Merck Ord Share Price (0O14)

Positive Points: Management emphasised Merck's strategy of executing on its core business, expanding geographically in high-growth markets, extending its complementary businesses and focussing at managing costs while investing for growth. The company stated that sales in emerging markets now accounted for about 20% of its pharmaceutical revenue, led by a 19% increase in China. Merck benefits from a strong balance sheet and cash-generating ability. Along with a strong pipeline and product portfolio, this enables it to offset weakness in any single product. The company said it plans to seek US regulatory approval by the end of 2013 for its insomnia drug suvorexant, its osteoporosis treatment odanacatib, and cholesterol drug tredaptive. The group adopts a focus on shareholder return and operates a share buy-back programme.

Negative Points: Merck, like its rivals, has been cutting costs as part of an effort to soften the blow from increased generic competition. The company's top-selling allergy and asthma medication Singulair lost patent exclusivity in August. Sales of Singulair dropped 55% to $602 million while Vytorin sales declined 10% to $423 million. Governments around the world continue to try and reduce health spending budgets. The pharmaceutical industry is exposed to political risk, litigation, product development risk, regulatory risk, and pricing pressures.

Financial Highlights: Merck reported a profit of $1.73 billion, up from $1.69 billion a year earlier. Revenue fell 4% to $11.49 billion, below Wall Street expectations of $11.57 billion.

Third quarter results: Merck sees profits rise as sales dip. Merck delivered a robust performance amid generic competition that began in August following the US expiration for the company's top selling asthma drug Singulair. The healthcare giant announced an improvement in profits to $1.73 billion, up from $1.69 billion a year earlier. Worldwide sales achieved $11.5 billion, which were down from $12 billion in the prior year quarter and shy of Wall Street estimates. The company said it remains on target to submit multiple new products for marketing approval between now and the end of 2013, including suvorexant for insomnia, odanacatib for osteoporosis and cholesterol drug Tredaptive. The company narrowed its full-year adjusted-earnings estimate to between $3.78 and $3.82 a share from its previous forecast of $3.75 to $3.85 a share

Company overview US drugmaker, Merck & Co, is a leading global research-driven pharmaceutical products and services company. The company discovers, develops, manufactures and markets a broad range of innovative products to improve human and animal health, directly and through its joint ventures. Its products, generally sold by prescription, include therapeutic and preventative agents for the treatment of human disorders and animal health supplies. The company's products are sold, primarily, to drug wholesalers and retailers, hospitals, clinics, government agencies and managed healthcare providers, such as health maintenance organisations and other institutions.