Financial Report: Merck

Merck

1Q Revenues: $9.4 billion (+1%)

1Q Earnings: $1.6 billion (+38%)

Comments: Pharmaceutical sales were up 1% to $8.2 billion, driven by oncology, hepatitis C and vaccines, largely offset by the loss of market exclusivity for ZETIA, CUBICIN, and NASONEX, as well as ongoing biosimilar competition in Europe for REMICADE. Sales of these products declined $686 million during 1Q17. Sales in the diabetes franchise were also down, reflecting a decrease in JANUVIA and JANUMET due to the timing of customer purchases in the U.S. as anticipated for the quarter. Growth in oncology was due to higher sales of KEYTRUDA ($584 million, +134%). Growth in hepatitis C was driven by ZEPATIER with $378 million in sales. Growth in vaccines was primarily driven by higher sales of GARDASIL ($532 million, +41%). Animal Health sales totaled $939 million, up 13% driven by the BRAVECTO.