Merck & Co Inc (NYSE:MRK) stock rose 0.35% (As on April 26, 11:48:47 AM UTC-4, Source: Google Finance) after the company reported first-quarter revenue and adjusted earnings that topped expectations as it posted strong sales of its blockbuster cancer drug Keytruda and vaccine products. The company posted a net income of $4.76 billion, or $1.87 per share, for the first quarter. That compares with a net income of $2.82 billion, or $1.11 per share, during the year-earlier period.

Merck shows substantial progress in preparing for Keytruda’s patent expiration in 2028. The loss of exclusive rights to the drug will likely cause sales to fall, forcing the company to draw revenue from elsewhere. But Merck has a handful of new deals under its belt and key drug launches that will help it offset those losses. That includes Winrevair, a medication approved in the U.S. last month to treat a progressive and life-threatening lung condition. Some analysts expect that worldwide sales of Winrevair could reach $5 billion by 2030.

MRK in the first quarter of FY 24 has reported the adjusted earnings per share of $2.07, beating the analysts’ estimates for the adjusted earnings per share of $1.88, based on a survey of analysts by LSEG. The company had reported the adjusted revenue growth of 9 percent to $15.78 billion in the first quarter of FY 24, beating the analysts’ estimates for revenue of $15.20 billion. Merck’s pharmaceutical unit booked $14.01 billion in revenue during the first quarter, up 10% from the same period a year ago. Merck’s immunotherapy Keytruda, which is used to treat several types of cancer, largely drove the growth. Keytruda generated $6.95 billion in revenue during the quarter, up 20% from the year-earlier period. Analysts had been expecting $6.71 billion in Keytruda sales, according to estimates from FactSet. Gardasil brought in $2.25 billion in sales, up 14% from the first quarter of 2023. That is in line with the $2.24 billion that analysts expected, FactSet estimates said.

The pharmaceutical giant also raised and narrowed its full-year revenue and adjusted earnings forecasts. Merck now expects 2024 sales to come in between $63.1 billion and $64.3 billion, up from previous guidance of $62.7 to $64.2 billion.

The company expects full-year adjusted earnings of $8.53 to $8.65 per share, up from its prior forecast of $8.44 to $8.59 per share.  That outlook includes a one-time charge of roughly 26 cents per share related to Merck’s acquisition of Harpoon Therapeutics in January. In February, Merck said it would buy Elanco Animal Health’s aquatic business for $1.3 billion in cash.