Feb 2 Reuters Merck Co on Thursday forecast a sharp decline in sales of its COVID19 antiviral pill as the pandemic eases globally.

The company estimated sales of molnupiravir, which is sold under the brand Lagevrio, to fall to about 1 billion this year from 5.68 billion in 2022.

The lower forecast for the COVID drug is the latest signal that a boost to global drugmakers from the pandemic is fading.

Roche also warned on Thursday that profits will decline in 2023 due to falling demand for its COVID19 therapy and diagnostics kits.

Merck also forecast 2023 earnings below analysts39; estimates on a tax hit from a recent acquisition.

The company said it expects adjusted earnings of 6.80 to 6.95 per share, lower than analysts39; average estimate of 7.36.

The U.S. drugmaker39;s shares were down 3 in premarket trade.

Revenue is projected to be 57.2 billion to 58.7 billion, compared with expectations of 58.1 billion.

The earnings forecast was hit by taxes that Merck will have to pay on the 1.35 billion acquisition of cancer drug developer Imago BioSciences, the company said.

The company, however, reported higherthanexpected fourthquarter earnings on strong sales of its COVID19 pill in Asia.

Sales in the quarter were 13.83 billion, up from 13.52 billion a year earlier. Analysts had expected sales of 13.67 billion, according to Refinitiv data.

Excluding items, Merck earned 1.62 per share, exceeding Wall Street expectations of 1.54, according to Refinitiv.

Sales of…