Joined Nov 11, 2007
31,929 Blog Posts

$MRK Hurts DOW Futures as They Miss and Guide Lower

“Merck & Co. (MRK) reported first quarter 2013 earnings of 85 cents per share, well above the Zacks Consensus Estimate of 78 cents. Tax benefits boosted first quarter 2013 earnings by 6 cents. Earnings, however, declined 14.1% from the year-ago period.

Revenues for the quarter fell 9.0% to $10,671 million and missed the Zacks Consensus Estimate of $10,997 million. Revenues were hit by the genericization of Singulair and a few other products and negative currency fluctuation (2%).

Including one-time items, first quarter 2013 earnings declined 7.1% to 52 cents per share.

The Quarter in Details

Merck’s Pharmaceutical segment posted sales of $8.9 billion, down 12%. Negative currency movement impacted Pharmaceutical segment sales by 2%. Products like Remicade, Simponi, Isentress, Zostavax and Gardasil performed well.

However, the strong performance of these products was offset by lower sales of Singulair, Maxalt, and Clarinex.

Singulair sales experienced a severe decline following its US patent expiry in Aug 2012. Sales fell 75% from the year-ago period to $337 million. We note that Singulair lost exclusivity in the EU in Feb 2013 and is experiencing a sharp decline in sales. The drug retains exclusivity in Japan until 2016….”

Full article 

If you enjoy the content at iBankCoin, please follow us on Twitter