Drug Discovery and Development

  • Home Drug Discovery and Development
  • Drug Discovery
  • Women in Pharma and Biotech
  • Oncology
  • Neurological Disease
  • Infectious Disease
  • Resources
    • Video features
    • Podcast
    • Voices
    • Webinars
  • Pharma 50
    • 2025 Pharma 50
    • 2024 Pharma 50
    • 2023 Pharma 50
    • 2022 Pharma 50
    • 2021 Pharma 50
  • Advertise
  • SUBSCRIBE

Merck Beats 1Q Profit Views with Tight Cost Controls

By Drug Discovery Trends Editor | May 5, 2016

This Thursday, Dec. 18, 2014, file photo shows the Merck logo on a stained glass panel at a Merck company building in Kenilworth, N.J. Drugmaker Merck reports financial results Thursday, May 5, 2016. (AP Photo/Mel Evans)Merck posted an 18 percent jump in first-quarter income, beating Wall Street expectations, as reduced spending on marketing, administration and research easily offset lower sales of its medicines outside the U.S.

The second-biggest U.S. drugmaker on Thursday nudged up its 2016 financial forecasts and its shares edged up in premarket trading.

Merck reported first-quarter earnings of $1.13 billion, or 40 cents per share, up from $953 million, or 33 cents per share, in 2015’s first quarter.

The Kenilworth, New Jersey-based company said adjusted earnings, excluding asset write-downs and restructuring costs, amounted to 89 cents per share, four cents more than analysts surveyed by Zacks Investment Research had expected.

The maker of Type 2 diabetes pill Januvia and cholesterol drugs Zetia and Vytorin is launching a new cycle of medicines as revenue from some older drugs declines, hurt by brand-name or generic competition.

Merck posted revenue of $9.31 billion in the quarter, just missing Street forecasts for $9.49 billion. While U.S. sales climbed 7 percent to $4.22 billion, sales oversees fell 7 percent to $5.09 billion.

Merck said revenue was reduced by 4 percent by the strong dollar, which reduces the value of medicines bought in local currencies. That’s a smaller hit than seen in recent quarters.

Merck raised its 2016 profit forecast slightly to a range of $3.65 to $3.77 per share, up from its February forecast of $3.60 to $3.75 per share. It expects revenue of $39 billion to $40.2 billion, up from its prior forecast of $38.7 billion to $40.2 billion.

“The Global Human Health business performed well in the first quarter. The Januvia franchise demonstrated strong growth, and we remain pleased with the ongoing launch of Keytruda in markets around the world,” Adam Schechter, the division’s president, said in a statement. “Additionally, we are already seeing positive signs in the launch of Zepatier in the United States.”

Sales of prescription medicines dipped 2 percent, to $8.1billion. Januvia and combo pill Janumet posted combined sales of $1.41 billion, while sales of Keytruda, one of the hot new cancer drugs that work by stimulating the immune system to better fight cancer cells, nearly tripled to $249 million. Zepatier, approved at the end of January for treating hepatitis C, posted initial sales of $50 million.

Merck noted a generic version of allergy spray Nasonex hit U.S. drug stores in March, and antibitoic Cubicin will get U.S. generic competition in June. Cheaper copycat versions of those drugs will begin cutting into sales of both, and some of its biggest sellers are approaching the end of their patent protection.

“Business development is a top priority, and we are actively pursuing the best external science through licensing or (small and mid-sized) acquisitions to bolster our pipeline and grow our company,” CEO Kenneth Frazier said in a statement.

Sales of veterinary medicines, such as chewable Bravecto tablets for killing fleas and ticks on drugs, were flat at $829 million.

In premarket trading, Merck shares edged up 14 cents to $54.95.

Its shares have increased nearly 4 percent since the beginning of the year, while the Standard & Poor’s 500 index has stayed nearly flat.


Filed Under: Drug Discovery

 

Related Articles Read More >

Zoliflodacin wins FDA nod for treatment of gonorrhea
FDA approved ENFLONSIA for the prevention of RSV in Infants
First clinical study results of Dupixent for atopic dermatitis in patients with darker skin tones 
Labcorp widens precision oncology toolkit, aims to speed drug-trial enrollment
“ddd
EXPAND YOUR KNOWLEDGE AND STAY CONNECTED
Get the latest news and trends happening now in the drug discovery and development industry.

MEDTECH 100 INDEX

Medtech 100 logo
Market Summary > Current Price
The MedTech 100 is a financial index calculated using the BIG100 companies covered in Medical Design and Outsourcing.
Drug Discovery and Development
  • MassDevice
  • DeviceTalks
  • Medtech100 Index
  • Medical Design Sourcing
  • Medical Design & Outsourcing
  • Medical Tubing + Extrusion
  • Subscribe to our E-Newsletter
  • Contact Us
  • About Us
  • R&D World
  • Drug Delivery Business News
  • Pharmaceutical Processing World

Copyright © 2025 WTWH Media LLC. All Rights Reserved. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of WTWH Media
Privacy Policy | Advertising | About Us

Search Drug Discovery & Development

  • Home Drug Discovery and Development
  • Drug Discovery
  • Women in Pharma and Biotech
  • Oncology
  • Neurological Disease
  • Infectious Disease
  • Resources
    • Video features
    • Podcast
    • Voices
    • Webinars
  • Pharma 50
    • 2025 Pharma 50
    • 2024 Pharma 50
    • 2023 Pharma 50
    • 2022 Pharma 50
    • 2021 Pharma 50
  • Advertise
  • SUBSCRIBE