MERCK & Co yesterday reported better-than-expected fourth quarter earnings, helped by a decrease in research spending, and predicted relatively flat 2012 results as the second biggest US drugmaker girds for cheaper generic forms of its biggest product, asthma drug Singulair.
Merck posted a fourth quarter net profit of $1.51bn (£955m), or 49 cents per share, compared with a loss of $531m, or 17 cents a share, a year ago, when the company took a $1.7bn charge related to a major clinical setback.
Merck earned 97 cents per share excluding items, including acquisition and restructuring expenses,
Global revenue rose two per cent to $12.2bn, just shy of Wall Street expectations of $12.53bn.
Sales of Singulair, whose US patent lapses in August, jumped eight per cent to almost $1bn, well above any other Merck product.
Sales of its Januvia diabetes drug soared 42 per cent to $96m, while a related combination product called Janumet jumped 34 per cent to $386m – suggesting the fast-growing diabetes franchise will be able to help offset Singulair’s approaching decline.
Merck said it expects full-year 2012 earnings of $3.75 to $3.85 per share, excluding special items.
The forecast reflects earnings 0.5 per cent lower to 2.1 per cent higher than those seen in 2011.
