Merck & Co, USA, has suffered heavy setback during the third quarter ended September 2008 and its net earnings declined by 28.4 per cent to US$ 1,093 million from $ 1,526 million in the corresponding period of last year. The company's sales also moved down by 2.1 per cent to $5,944 million from $6,074 million. The EPS nosedived to $0.51 from $ 0.70. The company is taking steps to improve performance under its global restructuring efforts and reducing its workforce by 12 per cent.
Richard T Clark, chairman, president and CEO, said, "Merck's third quarter results show continued strong growth in a number of our recently launched products and the efficiencies we have realized throughout the business. Since 2005, Merck has anticipated and aggressively prepared for the changing industry environment by restructuring our business and transforming the way in which we discover, manufacture and provide our products."
The marketing and administrative expenses declined by 11 per cent to $1.7 billion. This included expenses in the third quarter of 2007 was a $70 million reserve solely for future legal defence costs for VIOXX litigation. Research and development expenses were $1.2 billion for the quarter, a decrease of 19 per cent from the third quarter of 2007.
The company's sales for the first nine months of 2008 declined marginally to$17,818 million from $17,955 million in the corresponding period of last year. Its net profit went up by 26 per cent to $6,164 million from $4,906 million. Its pharmaceutical sales in US declined by 9 per cent to $9,974 million and its sales in foreign markets improved by 12 per cent to $7,844 million.