US-based major Merck, Sharp & Dohme Inc., (MSD; NYSE: MRK) has released its financial results for the second quarter of 2023, showing a 7% year-on-year (YOY) growth in worldwide sales, reaching USD 15 billion in constant exchange rates. The pharmaceuticals business reached USD 13.457 billion, up 8% YOY, while Animal Health sales reached USD 1.456 billion, up 2% YOY.
Performance by Business Segment
Despite the loss of COVID-19 sales of Lagevrio (molnupiravir), underlying growth has fully offset this decline. Keytruda (pembrolizumab), the PD-1 inhibitor, produced USD 6.27 billion in sales, expanding by 21% YOY, with recent growth driven by new indications such as adjuvant and neo-adjuvant use in triple negative breast cancer. The HPV Gardasil vaccine family generated USD 2.46 billion in sales, up 53%, driven by China market demand. Diabetes therapy Januvia/Janmet (sitagliptin) faced generic erosion in Europe and pricing pressure in the US, with global sales dipping -28% YOY to USD 864 million over the three months.
China Market Performance and Gardasil Sales
The China market was an outstanding performer with a 39% expansion to USD 1.887 billion in Q2 sales, and 45% YOY growth over the first six months of 2023 to USD 3.581 billion. Gardasil sales remain the key driver for the China market, boosted by the recent approval for Gardasil-9’s use to be expanded to females aged from 9-45. MSD expects the China performance to slow slightly in H2’23 due to the timing of Gardasil shipments.
New Market Approval and Future Pipeline Focus
During Q2’23, MSD added a new market approval in China for Koselugo (selumetinib), a MEK1/2 inhibitor used to treat plexiform neurofibromas in pediatric patients with neurofibromatosis type I. This drug is co-developed with AstraZeneca (AZ, NASDAQ: AZN). Merck is focusing on cancer and auto-immune diseases for its future pipeline, with the acquisition of Prometheus Biosciences (NASDAQ: RXDX) for USD 10.8 billion completed in June 2023. The company’s leading drug candidate, PRA-023 (now MK-7240), a monoclonal antibody directed to TL1A, has shown positive Phase II data in ulcerative colitis and Crohn’s disease.
Collaboration with Kelun-Biotech and Pipeline Development
In December 2022, Merck formed an in-depth collaboration with China’s Kelun-Biotech, taking on development of a string of antibody drug conjugate (ADC) candidates. At this year’s ASCO meeting, MSD presented positive data for MK-28702, the TROP-2 ADC acquired through that deal, in treating non-small cell lung cancer. Phase III trials for that drug in NSCLC and other tumor types are currently under planning.-Fineline Info & Tech
