Skip to main content
Subscribe
  • Sign Up Free
  • Login
  • Subscribe
  • News
    • Current News
    • Providers
    • Insurance
    • Government
    • Finance
    • Technology
    • Safety & Quality
    • Digital Health
    • Transformation
    • ESG
    • People
    • Regional News
    • Digital Edition (Web Version)
    • Patients
    • Operations
    • Care Delivery
    • Payment
    • Midwest
    • Northeast
    • South
    • West
  • Opinion
    • Bold Moves
    • Breaking Bias
    • Commentaries
    • Letters
    • Vital Signs Blog
    • From the Editor
  • Events & Awards
    • Awards
    • Conferences
    • Galas
    • Virtual Briefings
    • Webinars
    • Nominate/Eligibility
    • 100 Most Influential People
    • 50 Most Influential Clinical Executives
    • Best Places to Work in Healthcare
    • Excellence in Governance
    • Health Care Hall of Fame
    • Healthcare Marketing Impact Awards
    • Top 25 Emerging Leaders
    • Top Innovators
    • Diversity in Healthcare
      • - Luminaries
      • - Top 25 Diversity Leaders
      • - Leaders to Watch
    • Women in Healthcare
      • - Luminaries
      • - Top 25 Women Leaders
      • - Women to Watch
    • Digital Health Transformation Summit
    • ESG: The Implementation Imperative Summit
    • Leadership Symposium
    • Social Determinants of Health Symposium
    • Women Leaders in Healthcare Conference
    • Best Places to Work Awards Gala
    • Health Care Hall of Fame Gala
    • Top 25 Diversity Leaders Gala
    • Top 25 Women Leaders Gala
    • - Hospital of the Future
    • - Value Based Care
    • - Hospital at Home
    • - Workplace of the Future
    • - Digital Health
    • - Future of Staffing
    • - Hospital of the Future (Fall)
  • Multimedia
    • Podcast - Beyond the Byline
    • Sponsored Podcast - Healthcare Insider
    • Video Series - The Check Up
    • Sponsored Video Series - One on One
  • Data Center
    • Data Center Home
    • Hospital Financials
    • Staffing & Compensation
    • Quality & Safety
    • Mergers & Acquisitions
    • Data Archive
    • Resource Guide: By the Numbers
    • Surveys
    • Data Points
  • Newsletters
  • MORE+
    • Contact Us
    • Advertise
    • Media Kit
    • Jobs
    • People on the Move
    • Reprints & Licensing
MENU
Breadcrumb
  1. Home
  2. Finance
October 27, 2014 01:00 AM

Merck sees weaker Q3 on divestitures, hepatitis drug competition

Jaimy Lee
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print

    Merck & Co. sales fell 4% to $10.5 billion in the third quarter and profit tumbled 20% as the Whitehouse Station, N.J.-based drugmaker faced declining sales of some of its top-selling drugs and the loss of market exclusivity for others, the company reported.

    Part of the sales decline was attributable to several divestitures this year, including the sale of its consumer care business to Bayer, and a loss of revenue from a joint venture with AstraZeneca that ended in the first half of the calendar year.

    Merck is “making steady progress in our transformation, including divesting noncore assets, reducing our expense base and investing in our promising new product launches and pipeline,” Merck Chairman and CEO Kenneth Frazier said in a statement.

    Net income fell to $895 million in the third quarter of 2014, compared to $1.12 billion in the third quarter in 2013.

    The pharmaceutical business reported a 4% drop in sales to $9.1 billion in the third quarter of 2014, compared with roughly $9.4 billion in the same quarter a year ago. Merck said it lost market exclusivity for chemotherapy drug Temodar—sales declined 46% to $88 million—and Singulair, which reported a 22% drop in revenue to $218 million.

    It also reported lower sales of its hepatitis products due to the recent approval of new drugs. Revenue for Pegintron dropped by 19% to $84 million, while sales of Victrelis went down 78% to $27 million. Earlier this year, Merck said it would spend $3.8 billion to buy Idenix Pharmaceuticals, which is developing new treatments for hepatitis C.

    Sales of Gardasil, the company's HPV vaccine, dropped 11% to $590 million because it had received fewer purchases from the public health sector in the U.S.

    But its top-selling drug franchise, which is made up of Januvia and Janumet, which both help reduce blood sugar in patients with Type 2 diabetes, saw sales go up by 5% to $1.4 billion in the third quarter. Revenue for Remicade, which is commonly used to treat rheumatoid arthritis, also rose 5% during the same three months, to $604 million.

    The consumer-care divestiture to Bayer closed Oct. 1. Merck in May had announced it would sell the business, which includes allergy medicine Claritin and the sunscreen brand Coppertone, to Bayer for $14.2 billion. Sales in this business for the quarter fell 9% to $401 million.

    Merck's “other revenues” business unit reported a 56% decrease in sales to $137 million in the third quarter. The company attributed the decline to AstraZeneca's decision to buy out Merck's interest in a joint venture that manufacturers Nexium and Prilosec.

    The company said it expects revenue in 2014 between $42.4 billion and $42.8 billion.

    Follow Jaimy Lee on Twitter: @MHjlee

    Letter
    to the
    Editor

    Send us a letter

    Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.

    Recommended for You
    cahill_walgreens_photo_i.jpg
    Walgreens sells remaining stake in Option Care Health
    sutter_i.jpg
    Sutter Health plots ambitious California expansion
    Most Popular
    1
    More healthcare organizations at risk of credit default, Moody's says
    2
    Centene fills out senior executive team with new president, COO
    3
    SCAN, CareOregon plan to merge into the HealthRight Group
    4
    Blue Cross Blue Shield of Michigan unveils big push that lets physicians take on risk, reap rewards
    5
    Bright Health weighs reverse stock split as delisting looms
    Sponsored Content
    Daily Finance Newsletter: Sign up to receive daily news and data that has a direct impact on the business and financing of healthcare.
    Get Newsletters

    Sign up for enewsletters and alerts to receive breaking news and in-depth coverage of healthcare events and trends, as they happen, right to your inbox.

    Subscribe Today
    MH Magazine Cover

    MH magazine offers content that sheds light on healthcare leaders’ complex choices and touch points—from strategy, governance, leadership development and finance to operations, clinical care, and marketing.

    Subscribe
    Connect with Us
    • LinkedIn
    • Twitter
    • Facebook
    • RSS

    Our Mission

    Modern Healthcare empowers industry leaders to succeed by providing unbiased reporting of the news, insights, analysis and data.

    Contact Us

    (877) 812-1581

    Email us

     

    Resources
    • Contact Us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Editorial Dept
    • Submission Guidelines
    • Code of Ethics
    • Awards
    • About Us
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Modern Healthcare
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Current News
      • Providers
      • Insurance
      • Government
      • Finance
      • Technology
      • Safety & Quality
      • Digital Health
      • Transformation
        • Patients
        • Operations
        • Care Delivery
        • Payment
      • ESG
      • People
      • Regional News
        • Midwest
        • Northeast
        • South
        • West
      • Digital Edition (Web Version)
    • Opinion
      • Bold Moves
      • Breaking Bias
      • Commentaries
      • Letters
      • Vital Signs Blog
      • From the Editor
    • Events & Awards
      • Awards
        • Nominate/Eligibility
        • 100 Most Influential People
        • 50 Most Influential Clinical Executives
        • Best Places to Work in Healthcare
        • Excellence in Governance
        • Health Care Hall of Fame
        • Healthcare Marketing Impact Awards
        • Top 25 Emerging Leaders
        • Top Innovators
        • Diversity in Healthcare
          • - Luminaries
          • - Top 25 Diversity Leaders
          • - Leaders to Watch
        • Women in Healthcare
          • - Luminaries
          • - Top 25 Women Leaders
          • - Women to Watch
      • Conferences
        • Digital Health Transformation Summit
        • ESG: The Implementation Imperative Summit
        • Leadership Symposium
        • Social Determinants of Health Symposium
        • Women Leaders in Healthcare Conference
      • Galas
        • Best Places to Work Awards Gala
        • Health Care Hall of Fame Gala
        • Top 25 Diversity Leaders Gala
        • Top 25 Women Leaders Gala
      • Virtual Briefings
        • - Hospital of the Future
        • - Value Based Care
        • - Hospital at Home
        • - Workplace of the Future
        • - Digital Health
        • - Future of Staffing
        • - Hospital of the Future (Fall)
      • Webinars
    • Multimedia
      • Podcast - Beyond the Byline
      • Sponsored Podcast - Healthcare Insider
      • Video Series - The Check Up
      • Sponsored Video Series - One on One
    • Data Center
      • Data Center Home
      • Hospital Financials
      • Staffing & Compensation
      • Quality & Safety
      • Mergers & Acquisitions
      • Data Archive
      • Resource Guide: By the Numbers
      • Surveys
      • Data Points
    • Newsletters
    • MORE+
      • Contact Us
      • Advertise
      • Media Kit
      • Jobs
      • People on the Move
      • Reprints & Licensing