Merck & Co financials hit by patent expiries and strong dollar

US pharma giant Merck & Co (NYSE: MRK) reported 2014 financial, showing that revenue for the fourth quarter declined 7% to $10.48 billion, impacted by patent expirations and a stronger dollar, and missing analysts’ consensus estimates of $10.50 billion. Merck’s shares were down 3.9% at $58.62 in mid-morning trading.

Profit for the quarter was $7.32 billion, up from$781 million a year ago, due to the windfall from the sale of its consumer care business to Germany’s Bayer. Excluding one-time items, adjusted net income was $2.5 billion, or earnings per share of $0.87, just beating Wall Street consensus estimates of $0.86 per share.

Full-year 2014, worldwide sales were $42.2 billion, a decrease of 4% compared with the full year of 2013, including a 1% negative impact from foreign exchange and a 4% negative impact from patent expiries and divestitures, including the Consumer Care business. Generally-accepted accounting principles (GAAP) EPS was $2.54, with full-year 2014 non-GAAP EPS of $3.49, excluding certain items; GAAP EPS of $4.07.