uploads///Vaccine Franchise

How Merck’s Vaccines Business Is Positioned after 2Q17

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Nov. 20 2020, Updated 10:32 p.m. ET

Gardasil’s revenue trends

In 2Q17, Merck’s (MRK) Gardasil/Gardasil 9 generated revenues of ~$469 million, which reflected ~19% growth year-over-year (or YoY) and ~12% growth quarter-over-quarter. In 2Q17, Gardasil/Gardasil 9 witnessed ~19% YoY growth despite the 1% unfavorable effect from foreign exchange.

Higher sales in Europe due to the termination of the joint venture between Merck and Sanofi, SPMSD, in December 2016 propelled Gardasil’s high revenue growth in 2Q17. This revenue growth also received a boost from increased demand of Gardasil in the Asia-Pacific. The joint venture between Sanofi and Merck, SPMSD, developed and commercialized vaccines in Europe.

In 1H17, Gardasil/Gardasil 9 reported revenues of ~$1.0 billion, which reflected 30% growth on a YoY basis. To learn more about Gardasil, please refer to Gardasil Could Boost Merck’s Revenue Growth.

The chart above represents the revenue curve of Merck’s Vaccines portfolio from 2Q16 to 2Q17. To learn more about the revenue trends of Merck’s Vaccine segment, please read How Merck’s Vaccine Portfolios Are Expected to Perform in 2017.

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ProQuad/MMR-II/Varivax: Revenue trends

In 2Q17, Merck’s ProQuad/MMR-II/Varivax vaccines generated revenues of around $399 million, which reflected ~4% growth on a YoY basis and 12% growth on a quarter-over-quarter basis.

In 2Q17, ProQuad generated revenues of ~$130 million compared to $117 million in 2Q16. In 1H17, ProQuad generated revenues of around $233 million compared to $239 million in 1H16.

In 2Q17, MMR-II generated revenues of ~$86 million compared to $78 million in 2Q16. In 1H17, MMR-II reported revenues of around $178 million compared to $158 million in 1H16. The growth in sales in Europe propelled the revenue growth of MMR-II in 2Q17.

To learn more about ProQuad/MMR-II/Varivax revenue prospects, please read How ProQuad/MMR-II/Varivax Vaccines Are Expected to Perform in 2017.

RotaTeq’s revenue trends

In 2Q17, Merck’s RotaTeq generated revenues of around $123 million, representing an ~5% decline on a YoY basis and an ~45% decline on a quarter-over-quarter basis. A decline in sales volumes in the US was primarily attributed to the decline in YoY revenues, which was partially offset by sales growth in Europe.

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Pneumovax 23’s revenue trends

In 2Q17, Merck’s Pneumovax 23 vaccine generated revenues of around $166 million, representing ~38% YoY growth and 2% growth on a quarter-over-quarter basis.

In 1H17, Pneumovax generated revenues of around $329 million, which represents 44% growth on a YoY basis. The high growth in sales in the US fueled the vaccine’s revenue growth.

Zostavax’s revenue trends

In 2Q17, Zostavax generated revenues of around $160 million, which reflected ~7% growth on a YoY basis and ~4% growth on a quarter-over-quarter basis. In 1H17, Zostavax generated revenues of around $313 million, which reflected ~14% growth on a YoY basis.

Merck’s peers in the vaccines space include GlaxoSmithKline (GSK), Pfizer (PFE), Sanofi (SNY), Emergent Biosolutions, Novavax, Mitsubishi Tanabe, and Astellas Pharma. Growth in Merck’s Vaccines segment could strengthen the Vanguard Value ETF (VTV), which holds ~1.5% of its portfolio in Merck.

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