Human papillomavirus 9-valent vaccine, recombinant (Merck Sharp & Dohme)

Whilst attention in recent times has been on the financial performance of Bristol Myers Squibb's and Merck & Co.'s respective PD-(L)1 inhibitors Opdivo and Keytruda, much of the focus on their latest quarterly results was on the progress of new launches. With patent expiration looming for Keytruda in 2028, Merck reported that third-quarter sales of pulmonary arterial hypertension therapy Winrevair jumped 141% to $360 million, although missing estimates of around $410 million. The company explained that the product — which was first approved in March last year — suffered a negative impact of around $40 million from the timing of distributor purchases. Leerink analyst Daina Graybosch said that while "still relatively early following a cautious launch, we expect growth to accelerate," given a recent label expansion by the FDA. Merck is also hoping to further expand use of Winrevair into pre- and post-capillary pulmonary hypertension, which Graybosch noted could "significantly expand [its] market opportunity." Meanwhile, revenue from Merck's pneumococcal 21-valent conjugate vaccine Capvaxive reached $244 million, up from $47 million in the prior year. The jab gained initial clearance in mid-2024 for use in adults, with recent data suggesting that it may also be effective in at-risk children. Keytruda grows (for now) Keytruda — which could face US government-mandated price negotiations as early as 2027 — continues to grow, with sales lifting 10% in the third quarter to $8.1 billion, but falling short of estimates of $8.3 billion. However, Merck's second-biggest product Gardasil/Gardasil 9 suffered a 24% decline in revenue to $1.7 billion, mainly as a result of lower demand in China.  Overall sales in the three-month period grew 4% to $17.3 billion, topping analyst forecasts of $17 billion, with net income up 83% at $5.8 billion.  For the current year, Merck now expects sales of between $64.5 billion and $65 billion, narrowed from an earlier range of $64.3 billion to $65.3 billion. Meanwhile, earnings per share are now seen between $8.93 and $8.98, lifted from a prior range of $8.87 to $8.97. 'Urgency' around deals Along with new launches, CEO Robert Davis said that Merck is continuing to look at potential acquisition targets with "urgency," building on its recent $10-billion purchase of Verona Pharma. "We're not done. We do need to do more," Davis remarked, noting that particular areas of focus will be oncology — where there continues to be "a lot of opportunities" — immunology and cardiometabolic. "We're open to Phase I, all the way through Phase III," Davis indicated, with deals valued at between $1 billion and $15 billion. "As is always the case, science will drive us. And when we see a scientific opportunity where there’s an unmet…if we see value, we'll move." Cobenfy falls short… At BMS, attention is not only centered on the financial performance of Cobenfy — approved last year to treat schizophrenia — but also on an upcoming readout from the ADEPT-2 study in Alzheimer's disease psychosis. The product generated $43 million in the third quarter, but missed analyst estimates of around $48 million. Gained through the $14-billion purchase of Karuna Therapeutics, BMS has high hopes for Cobenfy. Chief commercialisation officer Adam Lenkowsky remarked on a conference call alongside its quarterly results that the product "is going to deliver continued steady growth in schizophrenia," with additional indications fuelling this in the long term. "But we are confident that Cobenfy will be a big drug over time." For a more detailed look at Cobenfy's prospects, read Spotlight On: Cobenfy's outlook remains constrained by unclear market positioning, and Vital Signs: BMS turns a new growth leaf ahead of critical Cobenfy readout. …but overall sales beat Aside from Cobenfy, BMS reported that Opdivo sales grew 7% in the quarter to $2.5 billion, while top seller Eliquis surged 25% to $3.7 billion. The company's overall revenue increased 3% to $12.2 billion, topping analyst estimates of $11.8 billion, while net income reached $2.2 billion, versus $1.2 billion in the prior year. "The beat in the quarter was primarily driven by growth portfolio revenues, which grew 18% year-over-year to $6.9 billion, and particularly the immuno-oncology portfolio," noted William Blair analyst Matt Phipps. For the full year, BMS now expects sales of between $47.5 billion and $48 billion, up from a previous range of $46.5 billion to $47.5 billion. Meanwhile, earnings per share are seen between $6.40 and $6.60, narrowed from a prior prediction of $6.35 to $6.65.