Summary
Merck & Co., Inc. reported net income of $1.729 billion for the third quarter of 2012, or $0.56 per diluted share, compared to $1.692 billion and $0.55 per diluted share in the prior year's third quarter. For the nine months ended September 30, 2012, net income was $5.261 billion, or $1.71 per diluted share, up from $4.760 billion and $1.53 per diluted share in the same period of 2011. The company's sales for the third quarter of 2012 were $11.488 billion, a 4% decrease compared to $12.022 billion in the third quarter of 2011, largely driven by the U.S. patent expiry of Singulair in August 2012 and foreign exchange headwinds. Year-to-date sales of $35.530 billion were down 1% from $35.753 billion in the prior year. Despite the sales decline, driven by key patent expiries and challenging European market conditions, Merck demonstrated operational resilience. The company generated strong operating cash flows and continued to return capital to shareholders through dividends and share repurchases. Strategic investments in R&D and pipeline development remain a focus, with notable advancements in areas like insomnia and cardiovascular disease. Investors should monitor the impact of Singulair's patent cliff and ongoing litigation, particularly the Vioxx and Fosamax cases, which continue to present potential financial risks.
Financial Highlights
50 data points| Revenue | $11.49B |
| Cost of Revenue | $4.14B |
| Gross Profit | $7.35B |
| R&D Expenses | $1.92B |
| SG&A Expenses | $3.06B |
| Interest Expense | $178.00M |
| Net Income | $1.73B |
| EPS (Basic) | $0.57 |
| EPS (Diluted) | $0.56 |
| Shares Outstanding (Basic) | 3.04B |
| Shares Outstanding (Diluted) | 3.08B |
Key Highlights
- 1Net income attributable to Merck & Co., Inc. for Q3 2012 was $1.729 billion, a slight increase from $1.692 billion in Q3 2011.
- 2Diluted EPS for Q3 2012 was $0.56, up from $0.55 in Q3 2011.
- 3Worldwide sales decreased by 4% to $11.488 billion in Q3 2012, primarily due to the U.S. patent expiry of Singulair.
- 4For the nine months ended September 30, 2012, net income increased to $5.261 billion from $4.760 billion in the prior year.
- 5Nine-month sales of $35.530 billion showed a 1% decrease compared to the same period in 2011.
- 6The company continues to repurchase shares, with approximately $3.0 billion remaining under its share repurchase program.
- 7Restructuring costs remain significant as Merck continues integration and optimization efforts post-merger.