Merck & Co 3rd-qtr profit rises 2%, despite generics hit on sales

US drug giant Merck & Co (NYSE: MRK) posted third-quarter 2012 financial results on Friday, showing that revenue has fallen 4.4% to $11.49 billion, compared with analysts’ expectations of $11.57 billion, hit by unfavorable exchange rates and generic competition. The 15 analysts polled by S&P Capital IQ anticipated sales of $11.58 billion on the same basis.

However, net income increased 2% to $1.73 billion, or $0.56 per share. Excluding acquisition, integration and restructuring charges totaling $1.2 billion, net income was $2.93 billion, or $0.95 per share. The 16 earnings estimates compiled by S&P Capital IQ forecast $0.92 per share. The company's shares were down 0.6% at $46.03 in morning trading.

Merck has narrowed the range of full-year 2012 non-GAAP earnings per share to be between $3.78 and $3.82 and the 2012 GAAP EPS range to be $2.08 to $2.24. The 2012 non-GAAP range excludes acquisition-related costs and costs related to restructuring programs. Merck continues to expect full-year 2012 revenues to be at or near 2011 levels on a constant currency basis.