Merck & Co 1st-qtr profit slumps 57%

Blaming the difficult global economy that has plagued patients, health care providers and payers, US drug major Merck & Co recorded  sharply-lower first-quarter 2009 profit, with sales and income from its  partnership on cholesterol drugs also down. The latter are generated  with fellow USA-based Schering-Plough, which Merck is in the process of  acquiring (Marketletter March 16). The disappointing results saw the  firm's share price fall 3% in morning trading on April 21.

Worldwide sales for the three months were $5.4 billion, a decrease of 8%  compared to the like quarter of 2008. Foreign exchange negatively  affected global sales performance by 3%. The loss of US marketing  exclusivity of Fosamax (alendronate) further impacted sales downward by  3% in the quarter. Net income was $1.42 billion, versus $3.30 billion  in the first quarter of 2008, which included a $1.4 billion after-tax  gain on a distribution from Anglo-Swedish drug major AstraZeneca.

The company reported non-GAAP earnings per share for the quarter of  $0.74, which excludes $0.07 of restructuring charges and merger-related  expenses. First-quarter GAAP EPS was $0.67. The company reiterated its  expectations for 2009 non-GAAP EPS to be between $3.15 to $3.30,  excluding certain items, and reduced its 2009 GAAP EPS range to $2.84 to  $3.09, solely as a result of costs related to the proposed merger with  S-P.