Merck & Co's 2009 outlook below predictions due to forex effects and restructuring costs
US drug major Merck & Co has warned that next year's profit will likely be well below analysts expectations due to the effects of a volatile global economy, fluctuations in the foreign exchange markets and continued challenges for several of its key products.
On the day of the news, December 4, shares fell 4.2%, as the New Jersey-based company also predicted lower sales of its blockbuster cholesterol franchise due to a drop off in demand for Vytorin (ezetimibe and simvastatin) and Zetia (ezetimibe) in the USA.
The last few years have seen the US firm benefit from the weak dollar, which has boosted the value of overseas sales, but Merck expects that the stronger currency will reduce 2009 revenues 3% and EPS 9%.
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