Merck News: Re earnings
WHITEHOUSE STATION, N.J.--(BUSINESS WIRE)--January 26, 1999--Merck & Co., Inc. today announced that earnings per share for the fourth quarter of 1998 were $1.16, an increase of 15% over the fourth quarter of 1997. Fourth quarter net income increased 13% to $1,400.7 million. Sales for the quarter were $7.5 billion, up 21% from the same period last year.
For the year, earnings per share were $4.30, an increase of 15% over 1997. Net income was $5,248.2 million for the year, an increase of 14% over 1997. Sales rose 14% to $26.9 billion.
Sales growth for the year was affected by the formation of the Merial joint venture and the divestiture of the crop protection business in the third quarter of 1997. Adjusting for these effects, sales for the year increased 16%. The fourth quarter and full year sales growth include a 5 and 3 point benefit attributable to the restructuring of Astra Merck, Inc. (AMI).
"Sales growth for the quarter and the year was led by the established major products and newer products, including those launched this year, as well as growth from the Merck-Medco Managed Care business and the effect of the AMI restructuring," said Raymond V. Gilmartin, chairman, president and chief executive officer. "Solid volume gains in both our domestic and international operations contributed to the results."
Foreign exchange reduced the fourth quarter and twelve month sales growth by one and two percentage points, respectively. Excluding exchange and including the effect of the AMI restructuring, sales of Merck human health products increased 19% for the fourth quarter and 14% for the year. In 1998, sales of Merck human health products outside the United States accounted for 43% of Merck human health sales.
"Income growth for the year was driven by solid sales volume gains as well as the effects of ongoing cost controls and productivity improvements in manufacturing, selling and general and administrative expenses," Mr. Gilmartin said.
Results for the year were paced by sales volume gains of established products, including ZOCOR, PRINIVIL and PROSCAR and the newer products, COZAAR*, HYZAAR*, FOSAMAX, CRIXIVAN, and the viral vaccines. Also contributing to the volume growth were SINGULAIR, PROPECIA, MAXALT, COSOPT and AGGRASTAT, all launched in 1998. Prescription volume growth in the Merck-Medco Managed Care business also contributed to the sales increase for the full year.
ZOCOR continues its strong volume growth and continues to be the most widely used cholesterol-lowering medicine worldwide. In July, the FDA approved a new 80 mg tablet of ZOCOR, which lowered LDL ("bad") cholesterol in clinical studies by a mean of 47 percent. In addition, the prescribing information for ZOCOR in the United States was changed to recommend the 20 mg tablet as the usual starting dose. Merck has demonstrated its confidence in the efficacy of the new dosage range of ZOCOR by introducing the "Get to Goal Guarantee," whereby patients can receive money back if they do not achieve the cholesterol goal set by their physicians while on ZOCOR.
Together, ZOCOR and MEVACOR, Merck's other cholesterol-lowering medicine, hold more than a 40 percent share of the statin market worldwide. The cholesterol-lowering market continues to grow rapidly, driven primarily by growth of more than 25 percent annually in the statin category. Yet today, even in the U.S. market, only about one-third of eligible patients are receiving treatment.
Merck's angiotensin converting enzyme (ACE) inhibitors, VASOTEC and PRINIVIL, continue to be among the world's most widely prescribed branded anti-hypertensives. Together, they hold about 30 percent of the worldwide market for ACE inhibitors. In the United States, VASOTEC is the only ACE inhibitor indicated for high blood pressure, asymptomatic left ventricular dysfunction and heart failure. VASOTEC is also the only ACE inhibitor indicated to reduce deaths due to symptomatic heart failure, regardless of the underlying cause. PRINIVIL, with its convenient once-daily dosing in hypertension, heart failure and acute myocardial infarction, continues to demonstrate growth well above the rate of the overall ACE inhibitor market.
Sales of PROSCAR, Merck's treatment for symptoms of benign prostate enlargement, grew solidly. The increase was driven largely by a new indication granted by the U.S. Food and Drug Administration earlier this year that made PROSCAR the only drug for BPH (benign prostate hyperplasia) indicated to reduce the risk of acute urinary retention and the need for BPH-related surgery.
Merck's angiotensin II antagonists (AIIA), COZAAR and HYZAAR, the first in this new class of anti-hypertensive drugs, are among Merck's fastest-growing products. COZAAR was launched in Japan in August. With approvals in 77 other countries to date, COZAAR is the world's most widely available AIIA. Physicians continue to adopt COZAAR and HYZAAR faster than any new anti-hypertensive launched in this decade because of its excellent tolerability profile and proven efficacy in treating high blood pressure. COZAAR is also the only product in its class cleared for the treatment of heart failure in any market. It has been approved for this use in 15 countries to date, including Germany and Spain, and applications for this indication are pending in other countries. Merck has not yet filed an application for heart failure in the United States.
FOSAMAX, Merck's medicine to treat and prevent postmenopausal osteoporosis and reduce the risk of fractures due to osteoporosis, is the leading nonhormonal treatment for osteoporosis worldwide. Data from the landmark Fracture Intervention Trial, published recently in the prestigious Journal of the American Medical Association, confirm the ability of FOSAMAX to reduce by nearly half the risk of hip and spinal fractures in postmenopausal women with osteoporosis.
CRIXIVAN, Merck's protease inhibitor for the treatment of HIV infection, is sold in more than 80 countries. Preliminary results from a Merck study, presented in November at the annual meeting of the Infectious Diseases Society of America in Denver, showed that the twice-daily combination of CRIXIVAN with the protease inhibitor nelfinavir may be a potent and convenient regimen for HIV patients. This study is another example of Merck's commitment to evaluating simpler drug regimens with CRIXIVAN.
SINGULAIR, Merck's new once-a-day tablet to treat chronic asthma in adults and children aged six and older, has quickly become the leader in the U.S. leukotriene antagonist class. The product has been launched in 37 other countries, including the United Kingdom, Spain, Germany, Sweden and Denmark. In clinical studies, SINGULAIR has improved asthma control in many patients by significantly decreasing asthma attacks, helping to prevent day- and night-time asthma symptoms, and reducing reliance on bronchodilators. It also has allowed many patients to gradually reduce their use of inhaled steroids.
PROPECIA, the first and only tablet for the treatment of male pattern hair loss, was introduced in the United States and 11 other countries in 1998. Launches are pending in 13 additional countries. Since its introduction, U.S. physicians have written more than one million prescriptions for PROPECIA, and more than 400,000 men have started treatment. In clinical studies, 83 percent of men maintained their current hair count and 66 percent grew visible new hair.
In 1998, Merck introduced MAXALT in the United States and 10 other countries. It has become the fastest growing oral migraine medication in the U.S. and in other key markets. MAXALT is the first and only migraine medicine available in both conventional tablets and convenient, rapidly dissolving oral tablets, which disintegrate within seconds on the tongue without liquids.
TIMOPTIC and TRUSOPT, two of Merck's leading anti-glaucoma medications, were joined this year by COSOPT, an eyedrop that lowers intraocular pressure in patients with open-angle glaucoma and ocular hypertension. The U.S. Food and Drug Administration approved COSOPT in April, and it has also been cleared for marketing in 18 countries in Europe and Latin America.
Merck's "platelet blocker," AGGRASTAT, was launched in the United States in May. It is the first drug in its class approved for the treatment of acute coronary syndrome, including patients with unstable angina/non-Q-wave myocardial infarction who are managed medically and those undergoing angioplasty or atherectomy. AGGRASTAT also has been launched in Switzerland, Germany and Mexico. More than 1,000 U.S. hospitals, which together treat about 80 percent of patients in the United States suffering acute coronary syndrome, have purchased AGGRASTAT.
VARIVAX, the first and only chickenpox vaccine available in the United States, continued its strong growth, with many states adopting requirements for vaccination prior to school and daycare entry. Sales of VAQTA, Merck's vaccine to prevent hepatitis A, also continued to grow.
On Jan. 11, 1999, the U.S. Food and Drug Administration assigned a six-month priority review to the Company's New Drug Application (NDA) for VIOXX, Merck's investigational once-daily, anti-inflammatory COX-2 specific inhibitor, for the treatment of osteoarthritis and pain. Merck filed the NDA on Nov. 23, 1998. Merck's application includes results from 68 studies that evaluated VIOXX for the treatment of the signs and symptoms of osteoarthritis and for the relief of pain. Similar applications also were filed with regulatory authorities throughout the world.
Merck-Medco continued its strong performance in 1998 and strengthened its position as the nation's leading pharmacy benefit manager. Merck-Medco's growth was fueled by major new accounts gained in all market segments. The volume of prescriptions handled by the company increased 11 percent to more than 322 million and drug spend increased 20 percent to $14.1 billion. The number of covered lives remained unchanged from 1997 at approximately 51 million. On Nov. 24, 1998, the Company's Board of Directors approved a two-for-one split of the Company's stock effective at the close of business on Feb. 16, 1999.
Merck & Co., Inc., is a leading, research-driven pharmaceutical products and services company. Merck discovers, develops, manufactures and markets a broad range of innovative products to improve human and animal health, directly and through its joint ventures. Merck-Medco Managed Care manages pharmacy benefits for employers, insurers and other plan sponsors, encouraging the appropriate use of medicines and providing disease management programs. Through these complementary capabilities, Merck works to improve the quality of life and contain overall health-care costs.
*COZAAR and HYZAAR are registered trademarks of E.I. DuPont de Nemours & Company, Wilmington, DE, USA.
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