Merck & Co has posted net profit growth of 21 per cent during the fourth quarter ended December 2016 despite flat growth in net sales. Its net profit increased to $1,184 million from $981 million in the same period last year. Its net sales declined marginally to $10,115 million from $10,216 million primarily by the loss of US market exclusivity in 2016 for Cubicion, antibiotic, Nasonex, an inhaled nasal corticosteroid for the treatment of nasal allergy symptoms; and Zetia, a medicine for lowering LDL cholesterol, as well as by the ongoing impact of biosimilar competition in the company’s marketing territories in Europe for Remicade, a treatment for inflammatory diseases. EPS worked out to $0.42 as against $0.35 in the last year.

Kenneth C Frazier, chairman and chief executive officer said, “The performance of Merck’s broad and balanced portfolio allows us to remain committed to biomedical innovation that saves and improves lives and delivers long-term value to shareholders. The momentum behind our pipeline and key product launches including the continued growth and expansion of Keytruda into new indications and markets around the world, further reinforces our company’s strategic direction. “

Sales in the fourth quarter of 2016 reflect the unfavourable impact of app. $150 million of sales in Japan, which occurred in the third quarter of 2016 rather than in the fourth quarter due to the implementation of a resource planning system.

For the full year ended 2016, Merck’s net sales improved marginally by 1 per cent to $39,807 million from $39,498 million in the previous year. Its net profit increased by 28 per cent to $5,712 million from $4,459 million. Full year EPS worked out to $2.04 as compared to $1.56. Its taxation provision jumped to $1,787 million from $942 million. Its R&D expenditure increased by 7 per cent to $7,194 million from $6,704 million.

Its US pharmaceuticals sales during 2016 increased by $17,073 million from $16,238 million in the previous year. However pharma sales in Europe declined to $7,689 million from $7,714 million. Its sales in Japan moved up to $2,784 million from $2,605 million. Sales in Asia Pacific improved $3,522 million from $3,431 million.

Merck expects its full year 2017 EPS to be between $2.47 and $ 2.62 and revenue between $38.6 billion an $40.1 billion.