Merck & Co sales and earnings fall, hit by patent expiries, but beat expectations

Shares of US pharma giant Merck & Co (NYSE: MRK) tracked 2.9% lower to $41.98 Friday morning, when the company reported financial results for the fourth-quarter and full-year 2012, showing that net income has declined 7.3% to $1.4 billion, or $0.46 a share. Non-GAAP earnings per share of $0.83, excluding certain items, beat the $0.85 average estimates of 17 analysts polled by Bloomberg. Fourth-quarter worldwide sales were $11.7 billion, a decline of 5%, including a 2% unfavorable impact from foreign exchange.

2012 full-year GAPP net income rose 6.2% to $6.67 billion, with non-GAPP income of $11.74 billion, up 0.4%. Non-GAAP EPS was $3.82, excluding certain items; GAAP EPS came in at $2.16. Full-year worldwide sales were $47.3 billion, a fall of 2%, including a 3% unfavorable exchange impact. Merck’s shares were down 3.1% at $41.90 in midday trading.

Merck indicated that it expects to file five drugs for regulatory approval in 2013, including the insomnia drug candidate. But the company said it will not seek approval until 2014 for osteoporosis treatment odanacatib, a year later than analysts had expected.