The Benzinga take on the Merck call reporting our third quarter earnings on Monday. Below are some key highlights from its conference call. Segments: • In our Diabetes business, we reallocated resources and invested significantly in JANUVIA and have now reported our second consecutive quarter of growth in the U.S. and international markets • This marks an important turnaround from where we were last year. • Our Acute Care business grew by double digits this quarter as we're now seeing the impact of our investments • These brands will continue to be key drivers of growth in emerging markets • Our Vaccines business remains a fundamental contributor to Merck despite a decline this quarter due to the timing of U.S. public sector purchases • In Oncology, our integrated business unit has made strides to file and launch KEYTRUDA • This quarter, we received approval from the FDA for KEYTRUDA, the first anti-PD-1 therapy approved in the U.S. for advanced melanoma • We also recently received breakthrough designation from the FDA for KEYTRUDA as a potential therapy for advanced non-small cell lung cancer • We continue to study KEYTRUDA in more than 30 different tumor types and are encouraged by recent data presented at the European Society for Medical Oncology in five different cancers • This approach led us to divest human health products and business areas that amounted to nearly $1 billion in annual revenue • That focus also led to the recently completed sale of our $2 billion revenue Consumer Care business to Bayer • Animal Health saw strong growth this quarter across all species. • We look forward to additional innovation coming out of our Animal Health pipeline and remain committed to growing this business, which is already a market leader in key segments of the global animal health market • We've made significant progress in redesigning our operating model and reducing our cost base • You recall that last October we targeted a net reduction in annual operating expenses of approximately $2.5 billion off our full-year 2012 expense levels by the end of 2015 • As a result of disciplined cost management I'm pleased that we remain on track to achieve our target for 2014 and our overall savings goal by the end of 2015 • Over the past 12 months, we've returned nearly $11.5 billion to our shareholders • We are encouraged by the growth trends we saw in the third quarter and the month of October. • We are seeing positive results from our efforts to defend our 75% market share and to grow the DPP-4 class • In our international market sales grew 4% driven by Europe and the emerging markets. • Sales declined in Japan due to the 10% re-pricing that occurred in April and the overall competitive environment for DPP-4s. • We are confident that we will deliver global sales growth for JANUVIA franchise in 2014. • Next in hospital and specialty care, sales of Isentress were $410 million in the third quarter, a decline of 3%. • Internationally our growth in Europe was balanced by the timing of tenders in the emerging markets. • Sales of our immunology products reach more than $700 million in the third quarter growing 9%. • Now turning to our vaccine business, in the third quarter vaccine sales were approximately $1.7 million. • Sales of ZOSTAVAX were approximately $180 million in the quarter, declining 2% compared to last year. Earnings Q3 2014 EPS: 0.9 REV: 10.6B Q2 2014 EPS: 0.85 REV: 10.93B Q1 2014 EPS: 0.88 REV: 10.93B Q4 2013 EPS: 0.88 REV: 11.319B Q3 2013 EPS: 0.92 REV: 11.032B Q2 2013 EPS: 0.84 REV: 11.01B Q1 2013 EPS: 0.85 REV: 10.671B My take: It would seem that executive spin was full-on during this call. They appear to claim many victories to the point that one should believe that Merck is undergoing a successful turnaround. The strategy is supposedly working as we divest business units, lower costs and provide handsome returns to shareholders. Maket share and growth is limited to a few products. Many others segments are negative. The future is bright with the promise of Keytruda. Cost cutting is keeping this company afloat. Annual revenues continue to slide even though EPS remains steady. This makes the shareholders happy...for now. At some point they will see through the smoke and mirrors as this is an unsustainable business model. The stock is down nearly 4% today.
Nice review but I'm not sure I agree with Merck's assessment and rosy outlook either. Look at Grastek, Zontivity and a few other products. Not much revenue being generated and what about access issues. Is anyone looking at how few offices are allowing reps in anymore? How about all the new competitors that keep eroding at Januvia sales. Downsizing and multiple products in the bag is almost certain.
After the complete outsourcing of sales my stock returns will be quite nicely increased. What a pleasure in will be to see you gone
This post appears to be the highlights of the conference call as published by Benzinga. The link:http://www.benzinga.com/news/earnings/14/10/4954989/merck-conference-call-highlights. Looks pretty much like a cut and paste and some commentary at the end. It is interesting to see the take home message that results from the earnings call. The picture painted by KF is much rosier than it is.
I am selling stock options today at a strike price of 35. Will totally pay for my new property in the Bahamas. Great to have worked for such a fine company.
Made it back from the islands and purchased a beautiful coastline property all on the profits of Merck. After I get the increased dividends from the stock performance I will be buying a large cruiser for my ocean excursions.
You should have sold your options 6-8 weeks ago and you could have bought on St. John instead of the Bahamas. Poor timing.
No I prefer the Bahamas. I can run a small gambling business and stash money out of anyone's reach. It can still be accomplished. Fishing is optimal and scuba diving enjoyable. The timing of stock sales is really not that important when you have my position.
Your continuing posts suggest you have an incredible life.... 10/31 - Exercise options 11/1 - Offshore money, contact broker, make flight reservations (11/2-11/3?) visit Bahamas, bid on home, bid accepted, home purchase agreement 11/4 - Return from Bahamas Plan gambling business, fishing trip, scuba diving 11/6 - Bang Victoria Secret's supermodel ....all in your head.
Typically a response from the pigsty. Root in the mud and continue your nonexistent and unproductive life.
