Merck's third-quarter sales reach $18.1 billion as newer drugs grow

What happened

Merck reported on Thursday 29 October worldwide sales of $18.1 billion for the third quarter of 2026, 5 percent more than a year earlier and 4 percent more without currency effects. ^[1]

Net income attributable to the company was $5,065 million, against $5,785 million a year earlier, a decrease of 12 percent. The company said higher spending on research and launches, amortization of acquired assets, interest and restructuring drove the decrease. Research spending of $4.5 billion included a $400 million charge for a license deal with SciBrunch. ^[1]

Why it matters

Newer products carried the growth while older ones lost patent protection. Winrevair, a drug for high blood pressure in the lungs' arteries, sold $694 million, up 93 percent, while Januvia and Janumet were down 39 percent and Bridion 67 percent on generic competition. Reuters reported that Merck begins losing US patent protection on Keytruda in 2028. ^{[1, 4]}

Keytruda, Gardasil and the rest

Keytruda and its injectable form, Keytruda Qlex, sold $8.6 billion, up 6 percent. Qlex, given under the skin rather than by infusion, accounted for $830 million. Infused Keytruda alone was down 5 percent, to $7,771 million from $8,142 million. ^{[1, 2, 5]}

Gardasil vaccine sales were $1,995 million, up 14 percent, which the company tied to favorable US public-sector purchasing and higher net pricing. Reuters reported early buying by the US Centers for Disease Control and Prevention. Merck paused shipments to China in February 2025 and said in August that revenue from a revised supply contract there would be immaterial in 2026. ^{[1, 3, 4]}

The company said the timing of purchases added about $550 million to drug sales growth, and Reuters reported Merck expects that to largely unwind over the fourth quarter and 2027. Animal health sales were $1,676 million, up 4 percent. Welireg grew 56 percent to $307 million, and Ohtuvayre, from the October 2025 purchase of Verona Pharma, added $184 million. ^{[1, 4]}

Outlook and pipeline

Merck said it now anticipates full-year 2026 sales between $66.8 billion and $67.3 billion, including about 1 percent from currency at mid-October rates. The prior range was $66.3 billion to $67.3 billion, and Reuters described the change as raising the low end. Chief executive Robert Davis said on the call that Merck expects to raise its $70 billion mid-2030s forecast for its newer medicines, Reuters reported. ^{[1, 4, 5]}

The release lists the INTerpath-001 results with Moderna: intismeran plus Keytruda reduced the risk of melanoma recurrence or death by 42 percent against Keytruda alone. Davis said the data were 'the first Phase 3 validation of a therapeutic cancer vaccine.' Company Analysis reported the data on Friday 23 October. ^{[1, 6]}

What settles it next

The FDA set Monday 22 March 2027 as its target date to decide on wider use of Enflonsia, an antibody against RSV for young children, and Thursday 22 April 2027 for two Idvynso HIV applications. Reuters reported the company said it expects 'moderate top-line growth' in 2027, with a hit of more than $2 billion from generics on older products. ^{[1, 3, 4]}

Who it reaches

Merck (MRK) is direct: the results are its own. Moderna (MRNA) is adjacent: the release names it as Merck's collaborator on intismeran. AstraZeneca (AZN) is adjacent: Merck's Koselugo alliance revenue was $13 million against $214 million a year earlier, after a 2025 amendment to their agreement. ^[1]