US-based Merck & Co's worldwide sales for the first quarter of 2009 declined by 8 per cent to $5.4 billion compared to the first quarter of 2008. Foreign exchange negatively affected global sales performance by 3 per cent for the quarter. The loss of US marketing exclusivity of Fosamax further negatively affected sales performance by 3 per cent in the quarter.
Net income for the first quarter declined sharply by 57 per cent to $1,425 million from $3,303 million in the first quarter of 2008. First-quarter 2008 net income includes a $1.4 billion after-tax gain on a distribution from AstraZeneca LP.
"Our first-quarter results in part reflect the impact of the difficult global economy on patients and providers, but we remain on track to meet our full-year earnings guidance," said Richard T Clark, chairman, president and chief executive officer.
"We believe our planned merger with Schering-Plough will accelerate Merck's transformation into a global healthcare leader built for sustainable growth and success," added Clark. "Together we will have a formidable pipeline, an expanded product portfolio, a broader global presence, and the best talent in the industry. The new Merck will have increased financial strength and enhanced capabilities focused on breakthrough research and development."
Research and development expenses were $1.2 billion for the quarter, an increase of 14 percent from the first quarter of 2008. These 2009 expenses include $88 million for costs associated with the company's 2008 global restructuring programme.
The company reiterated its expectations for 2009 non-GAAP EPS to be between $3.15 to $3.30, excluding certain items, and reduced its 2009 GAAP EPS range to $2.84 to $3.09, solely as a result of costs related to the proposed merger with Schering-Plough. The 2009 GAAP guidance includes a pretax charge of approximately $400 million to $600 million associated with the company's 2008 global restructuring program and $250 million to $350 million of costs related to the Schering-Plough merger. Merck said it is reducing its guidance for full-year 2009 revenue to $23.2 billion to $23.7 billion.