Merck & Co has suffered heavy setback during the second quarter ended June 2013 on account of stiff generic competition, acquisition related cost, restructuring costs and adverse foreign exchange rates. Its net profit declined by 49 per cent to $935 million from $1,820 million in the corresponding period of last year. Its sales declined by 11 per cent to $11,010 million from $12,311 million.
Kenneth C Frazier, chairman and CEO, said, “With seven of our top 10 products growing in the second quarter and solid performance overall, we continue to navigate significant patent expiries and adapt to the evolving global healthcare environment. We remain committed to pursuing innovative, best-in-class science that translates into medically important products, such as our PD-1 inhibitor for oncology. To enable further investment in promising growth opportunities, we continue to manage costs effectively, as reflected in our results for the quarter.”
Its pharmaceutical sales declined by 12 per cent to $9,310 million during the quarter under review from $10,560 million as the sales of Singulair product declined by 80 per cent to $281 million from $1,431 million and that of Januvia remained stagnant at $1,072 million. Singulair lost exclusivity in US and Europe during August 2012 and February 2013 respectively. The sales of Maxalt, Cozaar/Hyzaar and Clarinex declined following loss of market exclusivity. However, the sales of Gardasil, Janumet and Simponi improved during the quarter. Its sales of Animal Health division declined by 2 per cent to $851 million and that of Consumer Care division declined by 11 per cent to $490 million.
Pharmaceutical sales from emerging market improved by 7 per cent which accounted for app.22 per cent of pharmaceutical sales in the second quarter of 2013. China continues to be a key driver of growth in the emerging markets with sales increasing from 13 per cent. Worldwide sales of the combined diabetes franchise of Januvia/Janumet increased by 5 per cent to $1.5 billion. Its R&D expenditure declined to $1.9 billion from $2 billion reflecting lower upfront payments from external licensing activity.
For the first half ended June 2013, Merck's sales declined by 10 per cent to $21,681 million and its net profit moved down by 29 per cent to $2,551 million. Its pharmaceutical sales declined by 11.8 per cent to $18,201 million from $20,642 million in the similar half of last year. Singulair sales declined to $618 million from $2,771 million and that of Cozaar/Hyzaar declined by 22.6 per cent to $522 million. Its sales in US declined by 21.3 per cent to $6,945 million from $8,823 million and that in Europe declined by 5.7 per cent to $4,808 million from $5,099 million. Its sales in Japan and Latin America also declined 19.6 per cent and 1.8 per cent respectively.