Merck Isn't Too Reliant on Keytruda Yet, and That's Good News for Investors
Merck (NYSE: MRK) has performed well on the stock market this year. Since early January, the company's shares are up by about 15%, which compares favorably to the return provided by the pharmaceutical industry -- as measured by the SPDR S&P Pharmaceuticals Index -- which is up 10% year to date. The main reason behind Merck's performance has been none other than its blockbuster cancer medicine Keytruda. The company's top-selling product continues to spearhead its top-line growth, but there's something investors should appreciate: Merck's revenue isn't too reliant on Keytruda.
Merck released its third-quarter earnings report on Oct. 29. The company's sales were $12.4 billion, a 15% year-over-year increase, and Merck's non-GAAP earnings per share (EPS) improved by 27%. Most importantly, though, were the results from its oncology segment led by Keytruda. Sales of the cancer medicine were $3.1 billion, a 62% increase compared to the year-ago period. During the quarter, Keytruda made up about 25% of Merck's sales. It isn't unheard of for pharma companies to be much more reliant on their top-selling products than that. For example, AbbVie's Humira was responsible for about 58% of the company's sales during the third quarter.
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Source Fool.com
