Merck 1Q profits up 12%

04/20/07 - newratings.com

NEW YORK , April 20 (newratings.com) – Merck & Co (MRK) Thursday announced a 12% rise in its first-quarter profits, reflecting a robust performance across the company’s product range.

The Whitehouse Station, New Jersey-based company said its net earnings in the three months rose to $1.7 billion, or 78¢ per share, from $1.52 billion, or 69¢ per share, in the year-ago quarter. The company’s sales climbed 7% to $5.87 billion in the first quarter. Merck said its migraine drug, MK-0974, a so-called calcitonin gene-related peptide antagonist, was now entering Phase III trials and the data for the Phase II trials would be presented at a medical meeting in June. The combined global sales of Vytorin and Zetia, marketed in partnership with Schering-Plough Corp, jumped 47% to $1.2 billion in the latest quarter. Sales of Merck’s popular asthma drug, Singulair, rose 25% to $1 billion and the combined sales of hypertension drugs Cozaar and Hyzaar came in at $798 million, representing 14% growth.

Merck projected its second-quarter earnings, excluding restructuring charges, at $0.67-$0.71 per share. The company affirmed its earnings guidance for 2007 at $2.75-$2.85, excluding restructuring charges. Merck intends to continue its share repurchase programme in 2007 and has $6.3 billion left under its current buyback authorizations.