Merck & Co., Inc, has reported strong growth in sales and net profit during the fourth quarter and year ended December 2009 with the merger of Schering-Plough operations. Its consolidated net sales went up by 67 per cent to $10,094 million during the quarter ended December 2009 from $6,032 million in the corresponding period of last year. The consolidated net profit has taken a quantum jump and touched to $6,494 million from $1,645 million. With improvement in profits, its EPS improved to $2.35 from $0.78 in the last period.
Richard T Clark, chairman, president and CEO, said, “The new Merck is off to an excellent start. Our performance last quarter was characterized by strong growth in key brands and continued investment in our newest products and promising lat-stage pipeline. We are building momentum in our business while making great progress on integration. Each of our top 10 selling brands from an expanded product portfolio exceeded $1 billion in annual sales.”
Its R&D expenditure increased to $2 billion as against $1.4 billion in the similar quarter of last year. Restructuring costs, primarily related to employees separations, were $1.5 billion as compared to $103 million in the last period. The increase for the fourth quarter of 2009 is largely associated with the merger restructuring programme. As at the end of 2009, Merck had approximately one lakh employees and planning to reduce the same by 15 per cent by the end of 2012. The first phase of restructuring program is expected to be completed by the end of 2012.
For the full year ended December 2009, Merck's sales increased by 15 per cent to $27,428 million from $23,850 million in the previous year. Its net profit increased by 65 per cent to $12,899 million from $7,808 million with EPS of $5.65 during 2009. Its R&D expenditure moved up by 22 per cent to $5,845 million from $4,805 million.
Worldwide sales of Singulair, indicated for the chronic treatment of asthma and he relief of symptoms of allergic rhinitis, reached at $4.7 billion, a 7 per cent increased compared with the prior year. Sales of Remicade, for treatment for inflammatory diseases, reached at $2.3 billion.