MRK Merck and Co Inc

By Matt Grossman

Merck & Co. Inc. on Thursday logged an adjusted profit in the latest quarter as growth in its oncology and vaccine sales drove higher revenue despite the negative effect of the Covid-19 pandemic on sales.

The Kenilworth, N.J.-based pharmaceutical company logged a fourth-quarter loss of 83 cents a share, compared with earnings of 92 cents a share in the year-ago quarter. The company's net loss was $2.09 billion, a swing from a profit of $2.36 billion in the prior year's fourth quarter.

On an adjusted basis, Merck posted a profit of $1.32 a share. Analysts surveyed by FactSet were forecasting adjusted earnings of $1.38 a share.

Merck's revenue was $12.51 billion, up 5% from $11.87 billion in the fourth quarter of 2019. Analysts were expecting revenue of $12.67 billion.

The pandemic negatively impacted Merck's pharmaceutical revenue by $400 million in the latest quarter, the company said. Social distancing and reduced health-care visits particularly affected sales of vaccines for other diseases, according to the company. The full-year impact to Merck's revenue from the pandemic was about $2.5 billion, the company said.

Overall, pharmaceutical revenue in the quarter grew 8% to $11.4 billion, with growth driven primarily by oncology and vaccine sales.

Animal-health sales grew 4% to $1.2 billion.

The company forecast full-year revenue for 2021 of $51.8 billion to $53.8 billion and adjusted earnings of $6.48 to $6.68 a share.

Analysts had been forecasting revenue of $51.66 million and an adjusted profit of $6.30 a share.

Merck said Thursday that Chief Executive Kenneth C. Frazier will retire at the end of June. He will be succeeded by Robert M. Davis, the current chief financial officer.

Write to Matt Grossman at matt.grossman@wsj.com

(END) Dow Jones Newswires

February 04, 2021 07:21 ET (12:21 GMT)

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