What drove Merck's operating profit surge in Q2 2024?
3/30/2025 12:19am
Merck's operating profit surge in Q2 2024 can be attributed to **Keytruda's robust sales** and **Gardasil's increased demand**, which are core to Merck's pharmaceutical and vaccine segments:
1. **Keytruda's Sales Growth**:
- Keytruda, a cancer immune therapy, saw a significant 20% increase in sales, reaching $6.9 billion. This growth is due to expanded global usage and is a testament to its established market leadership in oncology.
- Analysts had anticipated sales of approximately $6.7 billion, so the actual figure exceeded expectations.
2. **Gardasil's Sales Increase**:
- The HPV vaccine Gardasil experienced a 14% sales boost, reaching $2.2 billion in sales. This rise is attributed to strong demand and favorable pricing.
- The combination of Gardasil and Gardasil 9 saw a collective sales increase of 14%.
3. **Pipeline Strength and Strategic Acquisitions**:
- Merck's ongoing expansion of its pipeline and recent acquisitions, such as Harpoon Therapeutics, have strengthened its position in cancer treatment. These moves are likely to contribute to future revenue growth.
- The approval of Winrevair for pulmonary arterial hypertension is expected to become a significant revenue contributor.
In summary, Merck's operating profit surge in Q2 2024 is primarily driven by the exceptional performance of Keytruda and Gardasil, alongside strategic initiatives that bolster its market position and revenue potential.