Business Editors and Medical/Health Writers
WHITEHOUSE STATION, N.J.–(BUSINESS WIRE)–July 19, 2002
Merck & Co., Inc. today announced that earnings per share for the second quarter of 2002 were $0.77, compared to $0.78 in the second quarter of 2001. Net income was $1,750.7 million, compared to $1,815.4 million in the second quarter of last year.
Sales were $12.8 billion for the quarter, an increase of 8% compared to the same period last year.
For the first six months of 2002, earnings per share were $1.47, compared to $1.49 in the first six months of 2001. Net income was $3,375.7 million, compared to $3,472.7 million for the first six months of 2001. Sales grew 7% for the period to $25.0 billion.
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Merck’s five key growth drivers - ZOCOR, VIOXX, FOSAMAX, COZAAR and HYZAAR*, and SINGULAIR - collectively had increased sales of 14% for the quarter and drove Merck’s human health sales performance. Overall, Merck’s human health sales decreased 3% and 2% for the second quarter and first six months, respectively. The human health sales performance includes a 4 point and 6 point unfavorable effect for the second quarter and six months, respectively, from products affected by patent expirations, including VASOTEC, VASERETIC, PEPCID, MEVACOR and PRINIVIL. Excluding the unfavorable effect from foreign exchange, the company’s human health sales decreased by 2% for the second quarter and were in line with the first six months. Sales outside of the United States accounted for 38% of the company’s first six months of 2002 human health sales. Merck’s overall sales growth also benefited from Medco Health Solutions, Inc.’s (Medco Health) sales, which increased this quarter by 16% over the second quarter of 2001.
* COZAAR and HYZAAR are registered trademarks of E.I. DuPont de
Nemours & Company, Wilmington, DE, USA
While Merck continues to invest in support of its key inline products and product introductions, its Marketing and Administrative expenses decreased 10% and 6% compared to the second quarter and first six months of 2001, respectively. This decrease reflects accelerated operational-efficiency and work redesign initiatives to permanently reduce the company’s overall cost structure.
Five Key Growth Drivers Continue Strong Performance
“Merck is pleased with the performance of our five key growth drivers and believe that bolstered with new data from clinical outcome trials, these medicines continue to have significant growth potential,” said Raymond V. Gilmartin, chairman, president and chief executive officer.
ZOCOR, Merck’s cholesterol-modifying medicine, continued its strong performance with second-quarter global sales of $1.6 billion. Results from the Heart Protection Study (HPS), the largest-ever study using a cholesterol-modifying medicine, were published earlier this month in The Lancet. According to the results, ZOCOR 40 mg helped save lives by reducing the risk of heart attack and stroke by one-fourth in a broad range of patients with heart disease or at high risk for heart disease. These results were consistent even in patients whose cholesterol levels were not high enough to require drug treatment under current treatment guidelines from around the world. The study, conducted by world-renowned Oxford University, also demonstrated heart-disease reductions with ZOCOR 40 mg in all patient populations studied, including women, the elderly and high-risk groups, such as those with history of heart attacks, diabetes, hypertension or vascular disease. The HPS also showed the safety and tolerability profile of ZOCOR 40 mg to be similar to placebo. Merck remains on track to file the results of the HPS with the U.S. Food and Drug Administration (FDA).
Global sales of VIOXX, the company’s second-largest selling medicine, were $845 million this quarter. In April, the FDA approved changes to the prescribing information to include results from the landmark VIOXX Gastrointestinal Outcomes Research (VIGOR) study and a new indication with VIOXX 25 mg for the relief of the signs and symptoms of rheumatoid arthritis in adults. VIOXX now is the only COX-2 specific inhibitor with a label demonstrating the proven risk reductions in clinically important gastrointestinal events compared to the non-steroidal anti-inflammatory drug (NSAID) naproxen and the only COX-2 specific inhibitor to offer once-daily 24-hour relief for osteoarthritis, rheumatoid arthritis and acute pain.
Global sales of FOSAMAX, the leading product worldwide for the treatment of postmenopausal, male and glucocorticoid-induced osteoporosis, were $640 million in the second quarter of 2002. Patient acceptance of FOSAMAX has been fueled by the Once Weekly formulation, which represents nearly 90 percent of U.S. prescriptions and is available in more than 70 countries worldwide. Significant market potential remains for FOSAMAX because less than 25 percent of the more than 50 million postmenopausal women with osteoporosis worldwide are currently diagnosed and treated. zithromax.