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The Markets
by Proactive
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The Markets
by Proactive
Proactive UK has moved.
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Pharma & Biotech

Merck & Co's quarterly loss widens as it takes US$2.6bn hit due to US tax changes

Fourth quarter earnings beat forecasts but revenues missed

US drugmaker Merck & Co Inc (NYSE:MRK) said its quarterly loss widened as it took a US$2.6bn charge related to the US tax reform.

The company reported a net loss of US$872mln, or 32 cents per share, in the fourth quarter compared to a loss of US$594mln, or 22 cents, in the year-ago period.

But excluding items, including the tax charge, the group earned US$2.7bn, or 98 cents per share, beating analysts’ estimates of 94 cents per share.

Revenue increased 3% to US$10.43bn, missing forecasts of US$10.5bn, with growth driven by a 4% increase in the pharmaceuticals business.

Sales of blockbuster cancer drug, Keytruda, surged 169% to US$1.3bn while Diabetes drugs Januvia and Janumet increased 1% to US$1.52bn.

Merck expects 2018 adjusted earnings of US$4.08 to US$4.23 per share and revenue of US$41.2bn to US$42.7bn.

Analysts had forecast earnings of US$4.11 per share and revenues of US$41.1bn.

The company expects to pay about US$5bn over eight years to repatriate cash held overseas and plans to spend US$12bn over five years in capital projects.

Shares were little changed ahead of the US opening bell at US$60.10 each.

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