Merck & Co., Inc. has received major jolt during the year ended December 2007 mainly due to Vioxx settlement agreement charges, costs related to the global restructuring program and civil governmental investigations charges. The company's net profit declined by 26 per cent to US $3,275 million from $ 4,434 million in the previous year as it provided $ 4,850 for Vioxx settlement agreement charge during 2007 as against nil in the previous year. Its sales for the year increased by 7 per cent to $24,198 million from $ 22,636 million in the previous year. The earning per common share moved down by 27 per cent to $1.49 from $2.03.
Its pharmaceutical sales in US increased by 7 per cent to $14,691 million and that in other markets reached at $9,507 million. World wide sales of Singulair, were $4.3 billion , a 19 per cent increase. Singulair continues to be the No 1 prescribed product in the US respiratory market. Combined global sales of Zetia and Vytorin, reached at $5.2 billion, representing a growth of 34 per cent.
Richard T Clark, chairman, president and CEO, said, "Our performance in 2007 shows that the customer-focused, more efficient business model we began implementing more than two years ago is working. We have a strong portfolio of products, a robust pipeline of potential new therapies and a leadership team focused daily on improving operational performance. This positions us to build on our record of delivering essential breakthrough medicines and vaccines like Januvia, Isentress and Gardasil to the global marketplace".
The operating profit before tax provision declined by 46 per cent to $ 3,371 million from $ 6,221 million in the previous year. The restructuring costs touched to $ 483 million the research expenses increased to $4,883 million on account of acquisition of NovaCardia, Inc. The company anticipates filing two additional NDAs with US FDA in 2008 for MK-0524B, extended-release niacin with laropiprant combined with simvastatin, and MK-0364, taranaband, an investigational medication for the treatment of obesity.
The company anticipates full-year 2008 EPS of $3.28 to $3.38. As of December 2007, $5.1 billion remains under the current buyback authorizatins approved by Merck's Board of Directors.