Merck reported higher-than-expected second-quarter sales on Tuesday, driven by the strength of its top-selling cancer treatment Keytruda. The U.S. drugmaker reported quarterly revenue of $16.61 billion, up 5% from a year earlier and above analysts’ average estimate of $16.36 billion.

Keytruda Sales

Sales of immunotherapy Keytruda rose 5% to $8.37 billion in the quarter, including $463 million from its newer subcutaneous formulation, Keytruda QLEX. This exceeded analysts’ estimates of $8.07 billion. Merck’s Chief Financial Officer Caroline Litchfield attributed the strong sales to the uptake of QLEX, stating that the company is on track to reach 30% to 40% adoption by the end of 2027.

Merck also reported a loss for the quarter due to a $5.7 billion charge from its acquisition of cancer drug developer Terns Pharmaceuticals. The company’s reported loss in the quarter was 13 cents per share, including the $2.31 per share charge from the deal. Analysts had expected an adjusted loss per share of 27 cents.

In other news, sales of Merck’s cancer-preventing HPV vaccine, Gardasil, generated $1.17 billion, slightly above the $1.15 billion analyst consensus. However, sales of its measles, mumps, rubella, and chickenpox vaccines fell 3% to $592 million in the quarter, below analysts’ estimates of $608 million.

Merck raised its 2026 revenue forecast to $66.3 billion to $67.3 billion, from a previous range of $65.8 billion to $67.0 billion. The company now expects 2026 adjusted earnings of $2.66 to $2.76 per share, including charges related to its acquisitions of Cidara Therapeutics and Terns Pharmaceuticals.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.