Merck Posts $111 million of Victrelis® Sales — US Formulary Stocking Still Underway


No doubt this is good news — Merck broke the $90-, $100-,and $110-million/quarter barriers, worldwide. However, it seems that Merck is still benefitting from inventory stock-ups on the drug, while most of that has already washed through Vertex’s Incivek® numbers presented last night. The current quarter split, then is about 78-22 in favor of Vertex. That may widen, in later quarters as the stock-up flows out of Merck’s reported sales, here. [Last night, Vertex indicated that it sees about 2.3 weeks of inventory at present in most US locations, but Vertex is still seeing strong growth in scrips. Merck didn't get into that level of detail on the call this morning.]

Currencies hurt Merck by 3 percent in Q1 2012 (at current rates), not 2 percent — but Merck sees it as a 1 percent item, due to current expectations on hedging decisions. That is slightly good news, but could be just deferring the currency effects into later quarters. Moreover, Merck expects mid-single digit pressure on its pharma prices through all of 2012 — as earlier expected.

Also on a non-GAAP basis, Merck beat at the EPS line by a penny. But I put almost no stock in non-GAAP beats of this sort. It is encouraging that sales were $11.7 billion, but that was about $100 million below the $11.8 billion consensus expectations. Carry-on.

About these ads

There are no comments on this post.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

Join 63 other followers

%d bloggers like this: