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Merck Profits Drop 35%

|Includes:Merck & Co Inc. (MRK)

Originally published at www.seclive.com

Merck & Co. Inc. (NYSE:MRK) announced its fiscal 2013 third quarter results, reporting profits that fell 35% due to increased generic drug competition. Despite the earnings dip, the company outperformed analyst expectations but missed at $11.03B on revenue projections of $11.1B. Januvia, Merck's top-selling drug and Type 2 diabetes medication, saw a 1% dip in sales to $1.4B this quarter. Sales of Singulair, the company's once-a-day asthma medication, fell 53% to $280M. Inflammatory disease medications Remicade and Simponi rose for a combined 22% increase to $700M in sales for the quarter. Merck earnings fell from $1.73B and $0.56 earnings per share from a year ago to $1.12B and $0.38 per share. The company announced earlier in the month that it will lay off 8,500 employees in a move to reduce costs by $2.5B in two years as it focuses on research and development and other opportunities.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Stocks: MRK