08:27 AM EDT, 04/25/2024 (MT Newswires) -- Merck ( MRK ) on Thursday recorded better-than-expected first-quarter results boosted by sales of cancer immunotherapy Keytruda and human papillomavirus vaccine Gardasil, prompting the pharmaceutical giant to raise its full-year outlook.

The company now anticipates adjusted earnings to be in a range of $8.53 to $8.65 a share for 2024, up from its previous projections of $8.44 to $8.59. The guidance includes a one-time per-share charge of $0.26 related to the firm's proposed deal to acquire Harpoon Therapeutics (HARP), laid out in January. The consensus on Capital IQ is for normalized EPS of $8.57.

Sales are pegged at $63.1 to $64.3 billion for the year, compared with the prior forecast of $62.7 billion to $64.2 billion. The Street is looking for revenue of $63.8 billion. Merck's ( MRK ) shares gained 2.6% in premarket activity.

"We have had a strong start to the year with robust growth across our business, which reinforces the confidence we have in our outlook," Chief Financial Officer Caroline Litchfield said in prepared remarks. The company is also making strategic investments to "deliver long-term value for patients, customers and shareholders."

For the March quarter, Merck's ( MRK ) adjusted EPS surged 48% to $2.07, ahead of analysts' $1.92 estimate. Sales advanced to $15.78 billion from $14.49 billion in the prior-year period, topping the Street's view for $15.2 billion.

Pharmaceutical sales climbed 10% to $14.01 billion, driven by growth in oncology and vaccines, partially offset by a decline in diabetes. Revenue for Keytruda jumped 20% to $6.95 billion buoyed by increased global uptake in earlier-stage indications, while Gardasil inclined 14% to $2.25 billion on robust demand, especially in China, and price increases.

The firm's anti-diabetic medication, Januvia, saw a 24% drop in revenue due to lower pricing and demand in the US, as well as generic competition in several international markets. Sales of the COVID-19 antiviral pill Lagevrio slipped 11% to $350 million, as a result of reduced demand in certain Asia Pacfic markets.

Animal health revenue edged up 1% to $1.51 billion, but was weighed down by lower volumes. Livestock sales remained nearly flat at $850 million, while companion animal products rose 3% to $661 million.

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