Merck (MRK) Q3 2026 Earnings Call Transcript

Merck's (MSD) Keytruda Qlex, using Alteogen's SC tech, hit $830M in Q3 2026 sales, up 79.3% QoQ. It now makes up 9.7% of Keytruda's total sales, growing from 5.5% last quarter. Keytruda's overall Q3 revenue was $8.61B, up 6% YoY. Alteogen may benefit from increased royalties as Keytruda Qlex sales rise.

Dow Jones closed at 52,163.07, down 0.59%, driven by Caterpillar's 9.5% drop due to unchanged sales forecast and tech sell-off led by Alphabet's 13.2% decline. Health care and financials provided support. GDP growth and jobless claims data were positive. Fed's inflation stance and Treasury yields influenced trading.

Alphabet's shares fell 13.2% after its quarterly report missed revenue forecasts and showed increased AI spending, dragging the Nasdaq down 1.7%. The S&P 500 and Dow Jones also declined. Investors are differentiating between companies funding AI internally and those relying on debt or cash burn. Other notable movers include Caterpillar (-9.5%), Fortinet (-20%), and Eli Lilly (+6.3%).

Moderna's stock surged 283.77% in 3 months, driven by positive phase 3 trial results for its personalized mRNA cancer vaccine with Merck and inclusion in the Nasdaq 100. However, shares dropped 17% after detailed trial results fell short of high expectations. Citigroup downgraded Moderna to Sell, citing overvaluation.

Merck reported Q3 2026 earnings, highlighting growth in oncology and animal health. Keytruda saw strong uptake in early-stage cancers. The company expects 2027 to be an investment year with moderate growth, offset by $2B in generic headwinds. Operating expenses are projected to rise at a mid-to-high single-digit rate. Management anticipates a 'shallow dip' in revenues post-Keytruda patent expiration but expects a quick return to growth.

At ESMO 2026, Amgen's tarlatamab (Imdelltra) with AstraZeneca's durvalumab (Imfinzi) showed improved survival in lung cancer. Genentech's divarasib outperformed Amgen's sotorasib (Lumakras) and Bristol Myers Squibb's adagrasib (Krazati) in KRAS G12C-mutated NSCLC. AstraZeneca's osimertinib (Tagrisso) plus savolitinib (Orpathys) and Merck's sacituzumab tirumotecan (Kelun-Biotech) also showed promising results.