Merck & Co Inc. (NYSE: MRK), a New Jersey-based global healthcare company that delivers health solutions through its prescription medicines, vaccines, biologic therapies, animal health and consumer care products, which it markets directly and through its joint ventures, today reported results for the third quarter ended September 30, 2012.
MRK’s third-quarter consolidated revenues decreased by 4% to $11,488 million from $12,022 million reported in the same period in the previous year. Income before taxes decreased by 6% to $2,218 million from that of $2,352 million reported in the third quarter of 2011. Net income for the quarter increased by 2% to $1,729 million from $1,692 million reported for the same period in the previous year.
The 4% decrease in revenues reflected a 5% decrease in MRK’s major business segment- Pharmaceutical. Revenue in the Animal Health Segment fell 1%.
MRK saw an increase of 15% and 16% in sales of the two diabetes drugs, Januvia and Janumet, respectively. Their combined sales were over $1,380 million for the quarter.
Sales of Singulair medicines decreased 55% to $602 million from $1,336 million. This was mainly due to the expiry of the drug’s patent in the US. It also noticed decline in sales on Vytorian by 10%, Clarinex by 50%, Remicade by 29%, Primaxin by 24% and on most of its Endocrine and Women’s health medicines and its diversified brand medicines.
Even though MRK’s revenue for the third quarter fell, the company cut its cost proportionately to reduce higher impact on operating income. Income before taxes fell mainly due to fall in revenues and an increase in other expenses.
The decrease in operating income was offset by decrease in income tax rate from 26.7% to 20.5%. Thus, net income increased by 2%.
MRK is working rigorously on many projects to research and develop medicines which will prevent many diseases including human cytomegalovirus infection, osteoporosis in post-menopausal women, type 2 diabetes, Insomnia, etc.
MRK shares have been quite volatile today. The stock has been trading in the range of $45.79 and $46.7650. At last check, the stock was trading 0.47% lower at $46.0815, with volume down from its daily average of 10.74 million to 5.59 million.