Merck & Co Inc (NYSE:MRK) stock fell 0.16% (As on April 28, 11:34:30 AM UTC-4, Source: Google Finance) after the company posted better-than-expected results for the first quarter on the strength of its blockbuster cancer immunotherapy Keytruda and human papillomavirus (HPV) vaccine Gardasil. However, the drugmaker raised its full-year forecasts for sales and earnings, citing strong global demand for its drugs.

MRK in the first quarter of FY 23 has reported the adjusted earnings per share of $1.40, beating the analysts’ estimates for the adjusted earnings per share of $1.32. The company had reported the adjusted revenue of $14.5 billion in the first quarter of FY 23, beating the analysts’ estimates for revenue of $13.8 billion, according to Refinitiv data. Keytruda sales rose 20% to $5.8 billion in the quarter, topping the estimates of $5.6 billion. Gardasil sales rose 35% to $2 billion, above expectations of $1.7 billion. Total Worldwide Sales Were $14.5 Billion, a Decrease of 9% From First Quarter 2022; Excluding LAGEVRIO, Growth Was 11%; Excluding LAGEVRIO and the Impact of Foreign Exchange, Growth Was 15%.

Further, sales for COVID treatment molnupiravir – sold under the brand name Lagevrio – fell to $392 million from $3.2 billion last year. The company has said it expects just $1 billion of molnupiravir sales this year. It forecast 2023 sales of $57.7 billion to $58.9 billion, up from its previous forecast of $57.2 billion to $58.7 billion. It now expects to earn $6.88 to $7 a share, from $6.80 to $6.95 per share previously.

The company raised  and Narrows Expected Full-Year 2023 Worldwide Sales Range To Be Between $57.7 Billion and $58.9 Billion, Including Negative Impact of Foreign Exchange of Approximately 2 Percentage Points; Outlook Includes Approximately $1.0 Billion of LAGEVRIO Sales. The company has raised and Narrows Expected Full-Year 2023 Non-GAAP EPS Range To Be Between $6.88 and $7.00, Including Negative Impact of Foreign Exchange of Approximately 4 Percentage Points.

Meanwhile, earlier this month, Merck agreed to buy Prometheus Biosciences Inc for about $10.8 billion, picking up a promising experimental treatment for ulcerative colitis and Crohn’s disease and building up its presence in immunology. Merck has been looking for deals to protect itself from eventual revenue loss as patents on Keytruda begin to expire toward the end of the decade. The company reported nearly $21 billion in Keytruda sales last year.