US-based pharmaceutical giant Merck, Sharp & Dohme (MSD, NYSE: MRK) has reported a robust 9% year-on-year (YOY) increase in global sales for Q3 2023, reaching USD 15.9 billion. This strong performance has led the firm to raise its full-year sales forecast to a range of USD 59.7 billion to USD 60.2 billion.
Keytruda Continues Impressive Growth
The programmed death-1 (PD-1) blockbuster Keytruda (pembrolizumab) was a significant driver of growth, with sales surging 17% over the quarter to a record USD 6.33 billion. The drug’s continued expansion was fueled by its use in earlier-stage and/or adjuvant/neoadjuvant treatments for breast and lung cancers.
Gardasil and Lagevrio See Increased Demand
Sales of the Gardasil family of human papillomavirus (HPV) vaccines grew by 16% to USD 2.59 billion, with China market demand being a key factor. Additionally, there was a 51% increase in demand for COVID-19 therapy Lagevrio (molnupiravir), primarily from the Japan market, resulting in USD 640 million in quarterly sales and a forecast for USD 1.3 billion in sales for the year.
Geographical Sales Growth
China and Japan emerged as the fastest-growing geographies, with YOY sales growth of 18% and 63%, respectively. Merck has already generated USD 5.2 billion in sales in China during the first nine months of this year, marking a 35% YOY growth.
Strategic ADC Collaborations and Pipeline Enhancements
Merck bolstered its pipeline through a potential USD 22 billion collaboration with Daiichi Sankyo for co-development and commercial rights to three antibody drug conjugate (ADC) candidates. CEO Rob Davis highlighted the “multi-billion-dollar commercial revenue potential” for these ADCs by the mid-2030s. Following this deal, Merck withdrew from development of two preclinical candidates previously licensed from China’s Sichuan Kelun Pharmaceutical Co., Ltd. However, Merck Research Labs president Dr. Dean Li emphasized that the Daiichi Sankyo collaboration complements the ongoing alliance with Kelun Biotech. Development of the lead TROP2 candidate, MK-2870 (SKB-264), continues with promising Phase II data, and Merck plans to initiate larger studies starting with non-small cell lung cancer (NSCLC) and expanding into additional tumor types.-Fineline Info & Tech
