Merck & Co's second-quarter profits drop by 12%
This article was originally published in Scrip
Merck & Co's second-quarter net income fell by 12%, hit by negative currency effects and poor sales of its cholesterol drugs Zetia (ezetimibe) and Vytorin (ezetimibe plus simvastatin).
However, it has reaffirmed its 2009 GAAP EPS guidance of $2.84-$3.09 and full-year revenue forecasts of $23.2-23.7 billion.
Net income fell to $1.56 billion in the quarter, EPS of $0.74 compared with $0.82 in the same period last year.
Total net revenue fell by 3% to $5.9 billion, although it would have increased by 3% excluding the impact of foreign exchange.
Merck's top-selling drug Singulair (montelukast), for chronic asthma and allergic rhinitis, rose by 16% to $1.3 billion.
However, combined global sales of Zetia and Vytorin, a joint-venture with Schering-Plough, fell by 10% to $1.03 billion. Global sales of Zetia, marketed as Ezeterol outside the US, fell by 8% to $513.5 million, while Vytorin, marketed as Inegy outside the US, fell by 12% to $519.9 million.
Nonetheless, earlier this year Merck and Schering-Plough reinforced their commitment to the franchise, following Merck's announcement to buy Schering-Plough for $41.1 billion.
Merck & Co's Second-Quarter and First-Half Top product Sales ($mill)
Product | 2nd quarter | % change | 1st half | % change |
Singulair | 1,257 | +16 | 2,315 | +6 |
Cozaar/Hyzaar | 906 | -4 | 1,745 | -2 |
Januvia | 462 | +38 | 873 | +44 |
Fosamax | 277 | -33 | 539 | -39 |
Gardasil | 268 | -18 | 530 | -26 |
Isentress | 172 | - | 320 | - |
Primaxin | 160 | -21 | 324 | -20 |
Janumet | 155 | - | 283 | - |
Cancidas | 149 | -7 | 287 | -7 |
Maxalt | 141 | +8 | 274 | +9 |
Zocor | 141 | -20 | 278 | -22 |
Merck said the merger with Schering-Plough was on track and is expected to close in the fourth quarter. It has raised $4.25 billion, a portion of which will be used to fund the cash portion of the buyout.
The merger is subject to approval by Merck and Schering-plough shareholders, each company's special meeting has been scheduled for August 7th.
R&D expenses rose by 19% in the quarter to $1.4 billion, while marketing and administrative costs fell by 10% to $1.73 billion. Restructuring costs amounted to $37.4 million.