Merck & Co's 2nd-qtr 2010 profits plunge 52% on S-P buy costs, but still beat expectations

2 August 2010

Costs related to its $41 billion acquisition of fellow drug major Schering-Plough last year have eaten into Merck & Co's profits, with the company posting a 52% drop in second-quarter 2010 earnings but, excluding items, beat consensus expectations. In morning trading last Friday, when the figures were released, Merck's share fell 2.4% to $34.23.

Net income amounted to $752.4 million, or $0.24 per share, down from $1.56 billion, or $0.74a share, in 2009's second quarter. The company reported non-GAAP (generally accepted accounting principles) earnings per share for the second quarter of $0.86, which excludes purchase accounting adjustments, merger-related expenses, restructuring costs and the gain on AstraZeneca's asset option exercise. Worldwide sales for the second quarter of 2010 were $11.3 billion.

Guidance updated

This article is accessible to registered users, to continue reading please register for free. A free trial will give you access to exclusive features, interviews, round-ups and commentary from the sharpest minds in the pharmaceutical and biotechnology space for a week. If you are already a registered user please login. If your trial has come to an end, you can subscribe here.

Try before you buy

Free

7 day trial access

Take a Free Trial

All the news that moves the needle in pharma and biotech
Exclusive features, podcasts, interviews, data analyses and commentary from our global network of life sciences reporters.
Receive The Pharma Letter daily news bulletin, free forever.

Become a subscriber

£820

Or £77 per month

Subscribe Now

Unfettered access to industry-leading news, commentary and analysis in pharma and biotech.
Updates from clinical trials, conferences, M&A, licensing, financing, regulation, patents & legal, executive appointments, commercial strategy and financial results.
Daily roundup of key events in pharma and biotech.
Monthly in-depth briefings on Boardroom appointments and M&A news.
Choose from a cost-effective annual package or a flexible monthly subscription

The Pharma Letter is an extremely useful and valuable Life Sciences service that brings together a daily update on performance people and products. It’s part of the key information for keeping me informed

Chairman, Sanofi Aventis UK