Merck Posts Mixed Q4 Earnings; Kenneth Frazier To Step Down As CEO

Merck & Co. Inc (NYSE: MRK) reported a fourth-quarter profit of $1.32 per share, which missed the analyst consensus estimate of $1.38. Sales grew 5% to $12.51 billion, marginally missing the consensus estimate of $12.68 billion.
Keytruda sales jumped 28% to $3.99 billion, and the company estimates that the negative impact of the COVID-19 pandemic on pharmaceutical revenue was about $400 million.
For the fiscal year 2021, Merck forecasts sales between $51.8 billion and $53.8 billion and adjusted EPS in the range of $6.48 and $6.68, both in line with a consensus of $51.8 billion and $6.41, respectively. MRK anticipates GAAP EPS in the range of $5.52 and $5.72.
The company expects Organon spinoff, an entity focused on women's health and biosimilars, in the late second quarter of 2021.
Concurrently, Kenneth C. Frazier, Chairman & CEO of the Company, has announced to retire as CEO, effective June 30, but he will continue to serve as Executive Chairman.
Merck's board has elected Robert M. Davis, current CFO & EVP, Global Services, as the new CEO and board member, effective July 1. Mr. Davis will become president of Merck, effective April 1.
Price Action: MRK shares increased marginally by 0.1% at $77.40 in premarket trading on the last check Thursday.

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