Merck's Earnings Boosted by Strong Vaccine Sales
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This is the second consecutive quarter of strong increases in income for Merck & Co. Inc. (MRK) which has left investors content. Its reported earnings were up to 62%. Merck’s new products, and restructuring efforts have outshined the $528 million reserve for Vioxx legal defense. Although its anti-cholesterol drug joint venture with Schering Plough (Vytorin and Zetia) contributed to this, it is important to note there was another factor as well - the strong sales of vaccines.
Sales of the cervical cancer vaccine GARDASIL increased 17% from the previous quarter, as the company launches the vaccine in more countries. Merck’s overall sales were up 12% to $6.1 billion of which vaccines totaled $1.2 billion. Gardasil accounted for 35% or $418 million of its vaccine sales exceeding many analysts’ expectations.
Merck earned $1.53 billion or $0.70 per share compared with $941 million, or $0.43 per share last year. It has raised its earnings outlook from $3.10 to $3.14 per share.
The once sleepy vaccine market is on the rise with new markets, and new disease prevention.
Disclosure: Merck & Co. Inc. (MRK) is a constituent of the Clear Global Vaccine Chain Index. Mr. Corn is CEO of Clear Indexes LLC which publishes the index which is licensed to Claymore Securities, Inc who has issued the ETF:(JNR). Mr. Corn does not own sharse in (MRK) directly and does own shares of (JNR).
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