Merck & Co has registered strong growth in profits during the third quarter ended September 2011 on account of restructuring of activities and divesting its interest in the Johnson& Johnson Merck Consumer Pharmaceuticals Company (JJMCP) and partnership with Sanofi Pasteur MSD. Its net profit touched to $1,724 million during the quarter under review from $372 million in the corresponding period of last year. Its sales improved by 8 per cent to $12,022 million from $11,125 million. With this hefty profits, its earnings per common shares worked out to $0.55 as against $0.11 in the last period. The R&D expenditure reduced by 16 per cent to $1,954 million from $2,322 million.
During the quarter, US FDA approved Juvisync (sitagliptin and simvastatin), a new treatment for type 2 diabetes that combines the glucose-lowering medication sitagliptin, the active component of Januvia, with the cholesterol-lowering medication Zocor (Simvastatin). The company also received approval from European Commission for Zoely (nomegestrol acetate 2.5 mg/17-beta estradiol 1.5 mg), formerly known as Nomac-E2, a monophasic combined oral contraceptive tablet for use by women to prevent pregnancy.
Kenneth C Frazier, president and CEO, said, “ Merck once again delivered a strong quarter, coupling top line growth and strong expense management to report an 11 per cent increase to the bottom line. Going forward, Merck will continue to implement our growth strategy, while transforming the way we operate our business”.
The company is collaborating with Beijing-based BGI, the world's largest genomics center, to focus on the discovery and development of biomarkers and genomics technologies. Scientists will work together to identify and characterize biomarkers with an emphasis on drug discovery, drug development and diagnostics applications across a wide range of therapeutic areas.
For the nine months period ended September 2011, Merck's net sales increased by 5 per cent to $35,753 million from $33,893 million. It earned a net profit of $4,849 million as compared to $1,482 million in the similar period of last year.
The company now expects full year 2011 revenue to grow in the mid-single digit percent range from a base of $46 billion in 2010. It has lowered its non-GAAP R&D expenses target range to $7.8 billion to $8 billion for the full year of 2011.