Merck's third-quarter earnings experienced a decline from the previous year, despite an increase in revenue, as the pharmaceutical leader adjusted its full-year bottom line outlook due to the ramifications of business development deals. The company now anticipates adjusted earnings to fall between $7.72 and $7.77 per share for 2024, reflecting a negative foreign currency impact of approximately $0.30.
This marks a shift from earlier projections of $7.94 to $8.04, with the current consensus on Capital IQ estimating normalized EPS at $7.99. In premarket trading, the stock decreased by 2.2%. The updated earnings forecast is partly influenced by a net charge of $0.24 per share associated with Merck's acquisition of Curon Biopharmaceutical's B-cell depletion therapy candidate.
Additionally, a payment from Japanese pharmaceutical company Daiichi Sankyo is factored in, linked to the expansion of the companies' existing development and commercialization agreement. For the year, sales are projected between $63.6 billion and $64.1 billion, a slight adjustment from the previous forecast of $63.4 billion to $64.4 billion.
Market analysts are expecting revenue close to $64.2 billion for 2024. In the September quarter, Merck's adjusted EPS fell 26% year over year to $1.57, aligning with analysts' consensus estimates. This figure accounts for a net charge of $0.79 per share attributed to the acquisitions of EyeBio, Curon, and Daiichi Sankyo.
Revenue rose to $16.66 billion from $15.96 billion in the same quarter last year, exceeding Wall Street's expectations of $16.51 billion. "Our third-quarter results were strong as we make strides towards 2025 and beyond," stated Chief Executive Robert Davis. "The progression and expansion of our pipeline highlight our efficacy in building a sustainable innovation engine, while also positioning Merck with a more varied portfolio to stimulate growth." Pharmaceutical sales increased by 5% year over year to $14.94 billion, primarily fueled by gains in oncology and cardiovascular sectors, although this growth was partially countered by declines in diabetes, vaccines, and virology categories.
Revenue for cancer immunotherapy Keytruda surged 17% to $7.43 billion, driven by heightened global uptake in earlier-stage usage, while the human papillomavirus vaccine Gardasil saw an 11% drop to $2.31 billion, largely attributed to decreased demand in China. The firm's anti-diabetic medication, Januvia, experienced a significant 42% drop in revenue due to reduced pricing in the U.S.
market and increased generic competition internationally. Furthermore, sales of the COVID-19 antiviral tablet Lagevrio plummeted by 40% to $383 million, stemming from diminished demand in Japan. Animal health revenue rose by 6% to $1.49 billion, supported by increased demand and pricing. Livestock sales saw a slight increase of 1% to $886 million, while companion animal products grew by 14% to reach $601 million..