Merck Profit Meets Views, Sees Deal Savings Ahead
Merck & Co posted quarterly profit in line with analysts' estimates today, and stuck by its goals for massive savings from its recently completed merger with rival drugmaker Schering-Plough Corp.
Fourth-quarter net income was $6.5 billion, or $2.35 per share, including about two months of results from Schering-Plough after the $41 billion merger closed in early November, and a big gain tied to the deal. A year ago, standalone Merck reported net income of
$1.64 billion, or 78 cents per share.
Excluding deal-related and other special items, earnings were 79 cents per share, matching the analysts' average estimate, according to Thomson Reuters I/B/E/S.
In combining with New Jersey-based neighbor Schering-Plough, Merck broadened its product portfolio, greatly bolstered its research pipeline and expects to achieve major cost savings to help it weather looming generic competition to its Singulair allergy medicine and other drugs.
