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Yahoo
a day ago
- Business
- Yahoo
The 5 Most Interesting Analyst Questions From Merck's Q1 Earnings Call
Merck's first quarter results drew a positive market reaction, reflecting operational resilience despite a 1.6% year-over-year revenue decline. Management identified continued strength in the oncology portfolio, especially KEYTRUDA and Welireg, alongside growth from new product launches like WinRevair and Cafaxib, as pivotal to performance. CEO Rob Davis cited 'increasing contributions from our newer commercialized medicines and vaccines and continued advancement of our pipeline.' Merck also managed through significant declines in Gardasil sales in China, emphasizing that underlying global demand outside China remained robust. Is now the time to buy MRK? Find out in our full research report (it's free). Revenue: $15.53 billion vs analyst estimates of $15.29 billion (1.6% year-on-year decline, 1.6% beat) Adjusted EPS: $2.22 vs analyst estimates of $2.14 (3.8% beat) Adjusted EBITDA: $7.72 billion vs analyst estimates of $6.88 billion (49.7% margin, 12.2% beat) The company reconfirmed its revenue guidance for the full year of $64.85 billion at the midpoint Operating Margin: 37.8%, up from 35.7% in the same quarter last year Constant Currency Revenue rose 1% year on year (12% in the same quarter last year) Market Capitalization: $199.1 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Geoff Meacham (Citi): Asked how Merck plans to offset tariff headwinds. CEO Rob Davis explained supply chain restructuring and inventory management, emphasizing moves to 'U.S. for U.S.' manufacturing over price increases. Tim Anderson (Bank of America): Inquired about providing long-term guidance beyond KEYTRUDA's patent expiry. Davis reiterated confidence in the pipeline's potential but signaled no immediate plans for detailed long-term projections. Luisa Hector (Berenberg): Questioned the impact of FDA and HHS changes on vaccine approvals. Dr. Dean Li stated that near-term regulatory timelines remain on track, with no delays observed despite agency personnel transitions. Steve Scala (TD Cowen): Sought clarification on Gardasil's global growth outlook and long-term targets. CFO Caroline Litchfield noted the end of Japan's catch-up program and ongoing China headwinds, confirming the previous $11 billion Gardasil target has been withdrawn. Akash Tewari (Jefferies): Asked about the severity and impact of potential new tariffs. Davis declined to speculate on tariff rates but stressed Merck's preparedness through operational and manufacturing adjustments. In the coming quarters, the StockStory team will watch for (1) key data releases from late-phase clinical trials, especially in oncology and cardiovascular programs, (2) the impact of supply chain moves and tariff mitigation on cost structure, and (3) trends in Gardasil and other vaccine uptake outside China. Developments around regulatory filings and ACIP recommendations for vaccines will also be important markers to assess execution and pipeline momentum. Merck currently trades at $79.48, in line with $78.70 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Techday NZ
20-05-2025
- Business
- Techday NZ
NetApp partners with NVIDIA to boost AI data storage in Australia
NetApp has entered a strategic partnership with NVIDIA to support the NVIDIA AI Data Platform reference design in NetApp AIPod solutions, aiming to help Australian enterprises and government agencies improve their data infrastructure for artificial intelligence applications. This partnership is designed to address the challenges faced by organisations in managing fragmented data environments, a barrier to adopting AI technologies. NetApp AIPod deployments built on the NVIDIA AI Data Platform will aim to provide secure, governed, and scalable data pipelines for retrieval-augmented generation (RAG) and inference tasks. According to NetApp, a recent Data Complexity report found that 79 percent of technology and business leaders believe that unifying their data estates is critical for attaining top AI outcomes by 2025. The partnership is positioned as a response to this need, supporting enterprises in breaking down data silos across both cloud and on-premises environments. Sandeep Singh, Senior Vice President and General Manager of Enterprise Storage at NetApp, said, "A unified and comprehensive understanding of business data is the vehicle that will help companies drive competitive advantage in the era of intelligence, and AI inferencing is the key. We have always believed that a unified approach to data storage is essential for businesses to get the most out of their data. The rise of agentic AI has only reinforced that truly unified data storage goes beyond just multi-protocol storage. Businesses need to eliminate silos throughout their entire IT environment, whether on-premises and in the cloud, and across every business function, and we are working with NVIDIA to deliver connected storage for the unique demands of AI." The integrated solution incorporates NVIDIA accelerated computing to run NVIDIA NeMo Retriever microservices, connecting these processing nodes to scalable storage via NetApp's platform. This enables customers to scan, index, classify, and retrieve large quantities of documents in real time, supporting more accurate and effective AI agents that can undertake complex, multi-step tasks in enterprise settings. Rob Davis, Vice President of Storage Technology at NVIDIA, commented, "Agentic AI enables businesses to solve complex problems with superhuman efficiency and accuracy, but only as long as agents and reasoning models have fast access to high-quality data. The NVIDIA AI Data Platform reference design and NetApp's high-powered storage and mature data management capabilities bring AI directly to business data and drive unprecedented productivity." The NVIDIA AI Data Platform is designed to align with NetApp's approach to advanced data management by making use of continuously updated metadata and vectorisation. This facilitates the delivery of timely, relevant, and accurate results in AI queries, supporting industries where data governance and security are particularly important. The solution is being positioned for government agencies and highly regulated sectors in Australia, where the management of secure and governed data access is frequently a requirement. This, according to NetApp, will help these organisations prepare their data environments and infrastructure for current and future AI initiatives. NetApp's collaboration with NVIDIA is part of its broader intent to supply enterprise-grade infrastructure that supports advanced use cases and the operational scaling of AI across business functions. With the increasing adoption of AI by enterprises addressing complex challenges, the partnership aims to ensure that the necessary storage, data management, and computational resources are available in the Australian and New Zealand markets.
Yahoo
12-05-2025
- Business
- Yahoo
MRK Q1 Earnings Call: Pipeline Expansion, Tariff Pressures, and Portfolio Diversification
Global pharmaceutical company Merck (NYSE:MRK) reported Q1 CY2025 results exceeding the market's revenue expectations , but sales fell by 1.6% year on year to $15.53 billion. The company expects the full year's revenue to be around $64.85 billion, close to analysts' estimates. Its non-GAAP profit of $2.22 per share was 4% above analysts' consensus estimates. Is now the time to buy MRK? Find out in our full research report (it's free). Revenue: $15.53 billion vs analyst estimates of $15.29 billion (1.6% year-on-year decline, 1.6% beat) Adjusted EPS: $2.22 vs analyst estimates of $2.14 (4% beat) Adjusted EBITDA: $7.72 billion vs analyst estimates of $6.88 billion (49.7% margin, 12.2% beat) The company reconfirmed its revenue guidance for the full year of $64.85 billion at the midpoint Operating Margin: 37.8%, up from 35.7% in the same quarter last year Free Cash Flow Margin: 7.5%, down from 14.1% in the same quarter last year Constant Currency Revenue rose 1% year on year (12% in the same quarter last year) Market Capitalization: $190.8 billion Merck's first quarter performance was shaped by steady demand in its oncology and animal health businesses and the growing contribution from new product launches such as WinRevair and Cafaxib. Management cited a pronounced decline in Gardasil sales in China, which offset growth in other segments, while ongoing investments in U.S. manufacturing and supply chain flexibility emerged as key themes. CEO Rob Davis highlighted the company's progress on pipeline development and the ability to manage near-term headwinds through inventory planning and manufacturing localization. Looking ahead, Merck's 2025 guidance is anchored by continued momentum in its late-stage portfolio and expectations for improved growth in the second half of the year. Management acknowledged external risks, particularly from evolving U.S. tariff policies, but expressed confidence in the company's strategic positioning. CFO Caroline Litchfield emphasized that operational investments and disciplined cost management will support both innovation and Merck's ability to navigate industry challenges. Merck's leadership focused on the evolving product mix, supply chain strategy, and regulatory developments as primary factors influencing first quarter results. The underlying performance was shaped by new product launches and ongoing demand for established therapies, while selective investments and external pressures played significant roles. New launch momentum: The recent launches of WinRevair for pulmonary arterial hypertension and Cafaxib in pneumococcal vaccines generated meaningful growth, with WinRevair's uptake driven by expanded clinical trial data and increasing patient reach in the U.S. and international markets. Gardasil sales volatility: A sharp decline in Gardasil vaccine sales in China was attributed to elevated inventories and softer demand, partially offset by stable or growing demand in the U.S., Japan, and other international markets. Management expects Japan's catch-up vaccination cohort to taper off, moderating future growth. Oncology expansion: Keytruda and other oncology assets recorded demand growth, particularly in earlier-stage cancers. Management noted new clinical and regulatory milestones, including additional indications and new dosing formulations for Keytruda, as contributors to ongoing portfolio strength. Supply chain adaptation: Merck's ongoing investments in U.S. manufacturing are designed to mitigate tariff exposure and support future launches. The company cited over $12 billion invested since 2018, with plans for more than $9 billion in further projects through 2028, focusing on 'U.S. for U.S.' supply resilience. Pipeline broadening: The late-stage pipeline now includes 20+ programs with significant commercial potential, spanning oncology, cardiometabolic, ophthalmology, and immunology, with management emphasizing the expected introduction of multiple blockbuster candidates over the next several years. Merck's outlook for the coming quarters centers on the continued integration of new products, proactive supply chain management, and ongoing investment in research and development to sustain portfolio diversification. Tariff and policy impacts: Management flagged ongoing and potential new tariffs—especially between the U.S. and China—as a risk to cost structure. The company's focus on U.S.-based manufacturing and inventory management is intended to offset near-term disruptions, but longer-term policy changes remain a source of uncertainty. Gardasil trajectory: Ongoing softness in China and the conclusion of Japan's catch-up vaccination program are expected to weigh on vaccine revenue growth, with management monitoring whether U.S. regulatory recommendations could boost domestic demand. Pipeline execution: Progress toward regulatory milestones and data readouts for late-stage pipeline programs will be critical to offsetting future revenue loss from patent expirations on major products such as Keytruda. Geoff Meacham (Citibank): Asked about Merck's strategies to mitigate new U.S. tariffs, particularly whether supply chain changes or price increases would be used. CEO Rob Davis explained the company's focus on manufacturing localization and inventory planning, stating price increases are not the preferred lever. Tim Anderson (Bank of America): Queried about long-term guidance after Keytruda's patent expiry and the potential for more granular disclosure. Rob Davis reiterated reliance on the pipeline's strength and noted there are no current plans for detailed line-by-line guidance. Luisa Hector (Berenberg): Sought clarity on regulatory developments at the FDA and HHS, especially for vaccine programs. Dr. Dean Li responded that near-term regulatory timelines remain on track despite broader agency personnel changes. Chris Schott (JPMorgan): Questioned the likelihood of Gardasil moving to a single-dose regimen in the U.S. and implications for pricing. Management emphasized the high evidentiary bar set by the FDA and the company's intention to maintain the vaccine's value proposition. Steve Scala (TD Cowen): Asked about the outlook for Gardasil growth after the end of Japan's catch-up program and whether previous long-term targets remain achievable. CFO Caroline Litchfield confirmed that the $11 billion target was withdrawn, citing China headwinds, but still expects strong growth outside China. In the next few quarters, the StockStory team will be monitoring (1) clinical trial readouts and regulatory decisions for key pipeline candidates, including new oncology and cardiometabolic therapies, (2) the impact of U.S. tariff policy changes on operating margins and supply chain strategy, and (3) the trajectory of Gardasil sales as Japan's catch-up program phases out and China demand remains uncertain. Execution on pipeline launches and mitigation of external headwinds will remain central to Merck's performance. Merck currently trades at a forward P/E ratio of 8.4×. At this valuation, is it a buy or sell post earnings? Find out in our free research report. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Mint
29-04-2025
- Business
- Mint
Merck to spend $1 billion on new factory to make US supplies of blockbuster drug
Merck & Co. will grow its U.S. manufacturing footprint with a $1 billion plant in Delaware, becoming the latest drugmaker to invest in the U.S. as tariffs targeting the industry loom. The facility's products will include biologic drugs and a new, easier-to-use version of Keytruda, the company's blockbuster cancer drug. The plant marks Merck's first in-house manufacturing site in the U.S. to make Keytruda, and will ensure American patients get the drug made domestically. 'It is really a strategy to make sure we can source the U.S. needs from U.S. sites," Merck Chief Executive Rob Davis said in an interview. 'As you look at what the current administration is doing and what President Trump is trying to achieve, this is very much aligned with that." Merck's biggest exposure to tariffs is Keytruda, which is the world's top-selling pharmaceutical, and is approved for treating lung cancer, melanoma and other tumors. Keytruda accounts for roughly half of the company's revenue, and last year generated $29.5 billion in worldwide sales. The drug is manufactured by the company outside the U.S. in places such as Ireland and by domestic contract manufacturers. Merck has said it has built up enough U.S. supply for 2025 and is working on expanding manufacturing for the future. The company recently projected tariffs implemented to date will cost the company $200 million. The Trump administration is weighing whether to implement tariffs targeting pharmaceutical imports, and analysts expect they might come next month. Drugmakers have been pushing the administration to delay, or phase them in over time. As talks of pharmaceutical tariffs have swelled, more drugmakers have made plans to invest in U.S. manufacturing sites. In recent weeks, Johnson & Johnson, Eli Lilly, Roche and AbbVie all pledged billions for domestic manufacturing in the coming years. The new plant will produce a more convenient-tweaked version of Keytruda given by injection, rather than intravenously. Merck is betting the new version will offset billions of dollars in revenue it could lose after Keytruda's U.S. patents start losing protection in 2028. Construction on the 470,000-square-foot site in Wilmington, Del., starts Tuesday with drugs set to roll out by 2030, according to Merck. The company estimates the plant will create at least 500 on-site jobs, and roughly 4,000 construction jobs. Merck is working to manage potential tariffs through inventory management and bolstering manufacturing, Davis said. Merck has already spent $12 billion since 2017 to grow domestic manufacturing and research capabilities, and is investing more than $9 billion over the next four years. Write to Jared S. Hopkins at
TECHx
25-03-2025
- Business
- TECHx
Pure Storage Enhances AI Solutions with NVIDIA Integration
Pure Storage Enhances AI Solutions with NVIDIA Integration News Desk - Share Pure Storage, an advanced data storage company, is expanding its AI-ready storage solutions by integrating the NVIDIA AI Data Platform into its FlashBlade® platform. This collaboration aims to deliver scalable, enterprise-grade solutions for AI-driven businesses. Key Announcements: FlashBlade Supports NVIDIA AI Data Platform Pure Storage's FlashBlade now integrates with NVIDIA's AI Data Platform reference design. This integration boosts storage performance and accelerates data processing, enabling real-time AI insights. By leveraging NVIDIA's AI Enterprise software and accelerated computing, FlashBlade ensures rapid data access for AI reasoning applications. Pure Storage's FlashBlade now integrates with NVIDIA's AI Data Platform reference design. This integration boosts storage performance and accelerates data processing, enabling real-time AI insights. By leveraging NVIDIA's AI Enterprise software and accelerated computing, FlashBlade ensures rapid data access for AI reasoning applications. Certified High-Performance Storage for NVIDIA Cloud Partners Pure Storage has achieved HPS certification for NVIDIA Cloud Partner Reference Architectures with NVIDIA HGX systems. This certification confirms that Pure Storage meets the high-performance requirements for GPU cloud infrastructure. Pure Storage has achieved HPS certification for NVIDIA Cloud Partner Reference Architectures with NVIDIA HGX systems. This certification confirms that Pure Storage meets the high-performance requirements for GPU cloud infrastructure. NVIDIA-Certified Storage for AI Factories Pure Storage has also received NVIDIA-Certified Storage Partner status for Foundation and Enterprise levels. This certification ensures that FlashBlade can handle the immense data demands of AI factories, accelerating AI model training and inference. These updates, including the FlashBlade//S500 certification for NVIDIA DGX SuperPOD, provide enterprises with the AI-ready storage they need for high-performance infrastructure. Overcoming AI Storage Challenges As AI and machine learning workloads scale, traditional storage solutions often become a bottleneck. FlashBlade eliminates these bottlenecks, offering: Ultra-fast read/write performance Seamless multi-tenancy and always-on QoS Scalability for real-time AI workloads By removing these barriers, Pure Storage ensures efficient, high-performance AI model training and inference. Rob Lee, CTO, Pure Storage: 'With NVIDIA AI Data Platform integrated into FlashBlade, we're providing the storage infrastructure needed for peak AI performance. Our certifications reinforce our commitment to powering enterprise AI at scale.' Rob Davis, VP, Storage Networking Technology, NVIDIA: 'AI requires real-time data processing. By combining NVIDIA's AI Data Platform with FlashBlade, enterprises can unlock new levels of efficiency and automation.' Jeremy Foster, GM & SVP, Cisco Compute: 'Pure Storage and NVIDIA make AI deployment easier. Our collaboration streamlines data infrastructure, helping businesses unlock the full potential of their data.' AI-Ready Storage for the Future As the demand for AI grows, enterprises need scalable storage solutions. Pure Storage and NVIDIA are at the forefront, offering AI-ready solutions that accelerate innovation and meet the data demands of modern enterprises.
