Merck (NYSE: MRK) reported an 8% drop in second quarter sales, reflecting the negative impact of COVID-19. However, sales of $10.9 billion and adjusted EPS of $1.37 topped Street’s views. The pharma giant lifted its outlook for fiscal 2020.
MRK stock rose about 3% in the pre-market trading session following its earnings announcement.
Merck narrowed and lifted FY20 revenue guidance to a range of $47.2 billion to $48.7 billion.
The Kenilworth, New Jersey-based firm also narrowed and raised its earnings outlook for FY20. GAAP EPS is now expected to be between $4.58 and $4.73 and non-GAAP EPS is now expected to be between $5.63 and $5.78.
Merck is accelerating two COVID-19 vaccine development efforts and a novel antiviral candidate. “We are conscious of our abiding responsibility to help advance vaccine and antiviral efforts as part of the global response to SARS-CoV-2 and to ensure broad, equitable and affordable global access to any medicines and vaccines we bring forward,” said CEO Kenneth Frazier.