Merck posts strong results for 2011
pharmafile | February 2, 2012 | News story | Sales and Marketing | Frazier, Merck, Singulair, Victrelis
Foreign exchange rates and strong sales from established products helped Merck to achieve single-digit growth for 2011.
The US firm saw sales grow 4% for the year to $48 billion, with half of this increase coming from favourable exchange rates.
The remaining 2% come from a strong showing of its diabetes franchise and ageing blockbuster Singulair.
Type II diabetes treatment Januvia was up a massive 39% to $3.3 billion for the full year, with combination treatment Janumet up 43%, to $1.4 billion.
Asthma treatment Singulair grew 10% to $5.5 billion compared to 2010, but the drug loses its US patent in August, and Merck expects a ‘significant decline in sales’ from this date as generics enter the market.
Merck has already prepared for this revenue loss by closing 16 facilities worldwide and cutting more than 16,000 jobs, in a bid to save $3.5 billion a year from 2012.
Sales of antihypertensives Cozaar and Hyzaar continued to slide due to generic erosion, dropping by 21% to $1.7 billion.
Sales of its new hepatitis C drug Victrelis also continued to struggle, reaching just $140 million for the full year since its US approval in May.
In contrast its rival treatment Incivek, developed by Vertex and J&J and also approved in May, made $420 million in its first quarter alone, and looks to be the treatment of choice amongst US physicians.
Research and development costs were $8.5 billion, and the firm said it would keep this at the same level for 2012. It also expects revenue to ‘be at or near’ 2011 results for 2012 at constant exchange rates.
Kenneth Frazier, chairman and chief executive of Merck, said: “We closed out 2011 with a high-quality fourth quarter by growing the top and bottom lines. Our overall performance for the year confirms our ability to achieve strong operating results while investing for the longer term.”
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