09:17 AM EDT, 10/31/2024 (MT Newswires) -- Merck's ( MRK ) third-quarter earnings fell year over year while revenue increased as the pharmaceutical giant cut its full-year bottom-line outlook amid the impact of business development deals.

The company now expects adjusted earnings to be in a range of $7.72 to $7.77 per share for 2024, including a negative foreign-currency impact of about $0.30, down from its prior guidance of $7.94 to $8.04. The current consensus on Capital IQ is for normalized EPS of $7.99. The stock was down 2.2% in premarket activity.

The reduced earnings forecast reflects a net charge of $0.24 a share related to the company's acquisition of Curon Biopharmaceutical's candidate for B-cell depletion therapy. It also includes the payment received from Japanese pharmaceutical company Daiichi Sankyo linked to the expansion of the firms' current development and commercialization agreement.

Sales are pegged at $63.6 billion to $64.1 billion for the year, compared with the previous outlook of $63.4 billion to $64.4 billion. The Street is looking for revenue of about $64.2 billion for 2024.

For the September quarter, Merck's ( MRK ) adjusted EPS dropped 26% year over year to $1.57, in line with analysts' consensus estimate. The metric reflects a net charge of $0.79 per share related to the company's acquisition of EyeBio and the Curon and Daiichi Sankyo deals. Sales advanced to $16.66 billion from $15.96 billion in the prior-year period, topping the Street's view for $16.51 billion.

"Our third-quarter results were strong, as we continue to make progress heading into 2025 and beyond," Chief Executive Robert Davis said in a statement. "Our pipeline is advancing and expanding, demonstrating our success in creating a sustainable innovation engine, and positioning Merck ( MRK ) with a more diversified portfolio to drive growth."

Pharmaceutical sales inclined 5% year over year to $14.94 billion, driven by growth in oncology and cardiovascular, partially offset by declines in diabetes, vaccines and virology. Revenue for cancer immunotherapy Keytruda jumped 17% to $7.43 billion buoyed by increased global uptake in earlier-stage indications, while human papillomavirus vaccine Gardasil fell 11% to $2.31 billion mainly due to lower demand in China.

The firm's anti-diabetic medication, Januvia, saw a 42% decline in revenue due to lower pricing in the US and generic competition in several international markets. Sales of the COVID-19 antiviral pill Lagevrio fell 40% to $383 million as a result of reduced demand in Japan.

Animal health revenue improved 6% to $1.49 billion, buoyed by higher demand and prices. Livestock sales ticked up 1% to $886 million, while companion animal products climbed 14% to $601 million.

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