Merck Disappoints As Patents Expire, Pharmaceutical Sales Decline

Diposkan oleh silent aja 9:49 PM Post a Comment

(Image credit: Getty Images via @daylife)

Pharmaceutical giant Merck says its sales decline is due to patent expiration but reported stronger growth in vaccines, immunology and HIV divisions.

Merck reported third quarter net income of $2.7 billion down from $2.9 billion during the same period last year. Earnings per share of 92 cents, however, beat consensus estimates of 88 cents. The results exclude expenses associated with acquisitions, restructuring and other one-time items. Sales were down 4% to $11 billion.

Citi Analyst Andrew Baum called the results 'underwhelming' and wrote 'we continue to struggle to become constructive on MRK at current valuations. The near term outlook for the stock is largely dependent on the perceived near term attractiveness of MK-3475 (anti-PD1) compared with BMY and Roche's PD1/PDL1 targeted agents.'

Shares of Merck were down 2.7% to $45.31 in morning trading.

Pharmaceutical sales were down 4% to $9.5 billion, including a 53% skid in sales to $280 million for asthma treatment Singulair. The company's Singulair expired last year.

Human Papillomavirus vaccine Gardasil showed 15% revenue gains to $665 million. More males took the vaccine and the public sector bought up about $60 million worth. Remicade, treatment for Crohn's Disease and rheumatoid arthritis, gained 17% to $574 million.

Sales of type 2 diabetes treatment Januvia, Merck's biggest seller, were down 5% to $927 million. The company explains that sales of the drug were lower than last year in the United States and Japan, but declines were partially offset by European and emerging market growth.

Sales growth was strong in Brazil, Korea, Russia and Turkey. However declines in China and Mexico, along with a 6% negative impact from foreign exchange led to a 4% decrease in emerging market sales. Overall emerging markets made up around 20% of total pharmaceutical sales.

The company narrowed full-year outlook to between $3.48 and $3.52 per share, from $3.45 to $3.55.