Merck points to robust pipeline despite near-term profits warning

Pharmaceutical bellwether Merck & Co caused a stir at its analysts'update meeting in New York by forecasting flat earnings and slowing sales growth for its main products in 2002 (see page 5), but stressed that it would be a "transition year to the new platform of opportunities" coming through in 2003. To maintain its position in pharmaceuticals research, Merck said it will increase its 2002 R&D budget to $2.9 billion from $2.5 billion in 2001.

Despite slowing growth for lipid-lowerer Zocor (simvastatin) and COX-2 inhibitor Vioxx (rofecoxib), Merck maintained that these two products, along with Fosamax (alendronate) for osteoporosis, Singulair (montelukast) for asthma and the antihypertensives Cozaar (losartan) and Hyzaar (losartan and hydrochlorothiazide) will provide the support for a new product roll-out cycle which will start from 2003.

Key events for some of these drugs include the filing of Singulair as a treatment for allergic rhinitis in early 2002 and the presentation of the results of two large clinical outcomes studies for Cozaar/Hyzaar, LIFE and OPTIMAAL. Data from LIFE will be presented at the American College of Cardiology meeting in March next year.