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Pharma Stock Roundup: MRK, PFE, SNY Q2 Earnings & Sales Beat, GSK Results Mixed

·4 min read

This week, GSK plc GSK, Merck MRK, Pfizer PFE, Sanofi SNY and AstraZeneca AZN announced second-quarter results. Pfizer, Merck and Sanofi beat estimates for both earnings and sales. While Merck, AstraZeneca and Glaxo raised their sales guidance for the year, Sanofi upped its earnings growth expectations.

Recap of the Week’s Most Important Stories

Pfizer’s second-quarter results were better than expected as it beat estimates for both earnings and sales, driven by strong contributions of its COVID products, Paxlovid pill and Comirnaty vaccine. Pfizer maintained its previously issued sales guidance for 2022 as well as its forecast for Comirnaty and Paxlovid. Pfizer’s better expectations for operational growth were offset by incremental potential headwinds from currency impact, forcing management to keep the 2022 sales guidance intact. However, the company lifted the lower end of its adjusted earnings per share guidance.

Merck also beat estimates for both earnings and sales. An ongoing recovery from the pandemic and strong global underlying demand across its business, particularly in oncology and vaccines, led to improved sales in the quarter. Keytruda, the largest product in Merck’s portfolio, generated sales of $5.25 billion in the quarter, rising 26% year over year. Merck’s COVID pill also contributed significantly to top-line growth, generating sales of $1.77 billion. Merck raised its sales guidance for 2022 while tightening its earnings expectations.

Sanofi’s quarterly results were impressive as it beat estimates for both earnings and sales. Blockbuster immunology medicine, Dupixent continued its outstanding performance in the quarter. Sales of vaccines recovered in the quarter. Sanofi raised its financial guidance for 2022. The company now expects adjusted earnings to grow approximately 15% at CER in 2022 versus the prior expectation of an increase in the low double-digit range.

GSK’s second quarter results were mixed as it beat estimates for earnings but missed the same for sales. Sales of the Specialty Medicines segment were up 35% at CER, driven by consistent growth across all therapy areas. Vaccine sales rose 3% at CER, mainly driven by the recovery in Shingrix sales. Shingrix sales more than doubled at CER during the quarter due to strong demand in the United States and Germany. Glaxo raised its sales guidance for 2022 to 6% to 8% from the previously provided range of 5% to 7%.

AstraZeneca’s second-quarter results were encouraging as it beat estimates for both earnings and sales Product sales growth was driven by higher sales of key medicines across Oncology and CVRM units like Tagrisso and Farxiga, which offset some negative impacts from the pandemic and slower sales growth in China. The rare disease drugs added following the Alexion acquisition also aided sales growth. AstraZeneca raised its sales expectations for 2022 due to better sales expectations for COVID-19 medicine, Evusheld and continued strong performance of its business. The company kept its profit forecast unchanged.

FDA’s Priority Tag to AstraZeneca’s Enhertu sBLA: The FDA accepted and granted priority review to AstraZeneca and partner and Daiichi Sankyo’s supplemental biologics license application (sBLA) for Enhertu. The sBLA seeks approval of Enhertu in previously treated patients with HER2-low unresectable and/or metastatic breast cancer with hormone receptor (HR) positive or HR-negative disease. The FDA’s decision is expected in the fourth quarter of 2022. The sBLA was based on data from the DESTINY-Breast04 study, which showed that Enhertu demonstrated a survival benefit in patients with HER2-low metastatic breast cancer.

The Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency gave a positive opinion, recommending marketing authorization of long-acting C5 complement inhibitor Ultomiris for generalized myasthenia gravis (gMG). Ultomiris was approved for adults with gMG who are AChR antibody-positive in the United States in April 2022.

The CHMP also recommended approving AstraZeneca’s Tezspire (tezepelumab) as an add-on maintenance treatment of adult and pediatric patients (aged 12 years and older) with severe asthma. Tezspire was approved in the United States for a similar indication in December 2021.

The NYSE ARCA Pharmaceutical Index rose 1.03% in the last five trading sessions.

Large Cap Pharmaceuticals Industry 5YR % Return

Large Cap Pharmaceuticals Industry 5YR % Return
Large Cap Pharmaceuticals Industry 5YR % Return

Large Cap Pharmaceuticals Industry 5YR % Return

Here’s how the eight major stocks performed in the last five trading sessions.

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Zacks Investment Research

Image Source: Zacks Investment Research

In the last five trading sessions, AstraZeneca rose the most (2.0%) while Pfizer declined the most (0.9%).

In the past six months, Lilly rose the most (34.8%) while Roche declined the most (12.8%).

(See the last pharma stock roundup here: JNJ, NVS Q2 Earnings, GSK Consumer Unit Spin-Off)

What's Next in the Pharma World?

Keep a tab on Q2 earnings of Lilly, Bayer and Novo Nordisk and regular pipeline and regulatory updates next week.

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