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2016-07-28 13:54:14 MRK Merck $58.23 / -0.37 (-0.63%) 13:54 07/28/16 07/28 13:54 07/28/16 13:54	On The Fly: What to watch in Merck earnings report Merck (MRK) is scheduled to report results of its second fiscal quarter before the market open on July 29, with a conference call scheduled for 8:00 am ET. What to watch for: 1. IMPROVED FX RATES: Along with its last earnings report, Merck raised its full year forecast. The drug giant said it saw adjusted earnings per share for 2016 to be $3.65-$3.77 on higher than previously expected revenue of $39B-$40.2B. The company attributed the improved non-GAAP EPS range to more favorable foreign exchange rates. 2. HEADWINDS FROM NASONEX, REMICADE: Merck's first quarter pharmaceutical sales were impacted by a decrease in Remicade sales, a treatment for inflammatory diseases, due to the accelerating impact of biosimilar competition in the company's marketing territories in Europe. Pharmaceutical sales also reflected declines in Nasonex, an inhaled nasal corticosteroid for the treatment of nasal allergy symptoms, and Zostavax, a vaccine for the prevention of herpes zoster. Pharmaceutical sales were unfavorably affected in the first quarter by the company's reduced operations in Venezuela. A generic version of Nasonex became available in the United States in March as a result, the company anticipates significant losses of future Nasonex sales. Additionally, in June the company lost U.S. patent protection for Cubicin, an I.V. antibiotic, and significant losses of Cubicin sales are expected to occur thereafter. 3.CANCER AND DIABETES: Merck's cancer drug Keytruda saw sales of $249M in Q1 compared with $83M the year before. According to a Wall Street Journal article from May 5, Merck is in the process of expanding the drug for a variety of cancers. Sales from Merck's diabetes franchise Januvia and Janumet increased 4% in the quarter. 4. PIPELINE HIGHLIGHTS: In Q1, Merck advanced its development program for Keytruda an anti-PD-1 therapy for the treatment of metastatic non-small cell lung cancer in previously treated patients whose tumors express PD-L1, as well as advanced melanoma. Also in Q1, The FDA approved Zepatier, a once-daily, fixed-dose combination tablet for the treatment of adult patients with chronic hepatitis C virus genotype GT1 or GT4 infection, with or without ribavirin.	29 Jul

2016-07-28 13:54:14

MRK

Merck

$58.23 / -0.37 (-0.63%)

13:54

07/28/16

07/28

13:54

07/28/16

13:54

On The Fly: What to watch in Merck earnings report

Merck (MRK) is scheduled to report results of its second fiscal quarter before the market open on July 29, with a conference call scheduled for 8:00 am ET. What to watch for: 1. IMPROVED FX RATES: Along with its last earnings report, Merck raised its full year forecast. The drug giant said it saw adjusted earnings per share for 2016 to be $3.65-$3.77 on higher than previously expected revenue of $39B-$40.2B. The company attributed the improved non-GAAP EPS range to more favorable foreign exchange rates. 2. HEADWINDS FROM NASONEX, REMICADE: Merck's first quarter pharmaceutical sales were impacted by a decrease in Remicade sales, a treatment for inflammatory diseases, due to the accelerating impact of biosimilar competition in the company's marketing territories in Europe. Pharmaceutical sales also reflected declines in Nasonex, an inhaled nasal corticosteroid for the treatment of nasal allergy symptoms, and Zostavax, a vaccine for the prevention of herpes zoster. Pharmaceutical sales were unfavorably affected in the first quarter by the company's reduced operations in Venezuela. A generic version of Nasonex became available in the United States in March as a result, the company anticipates significant losses of future Nasonex sales. Additionally, in June the company lost U.S. patent protection for Cubicin, an I.V. antibiotic, and significant losses of Cubicin sales are expected to occur thereafter. 3.CANCER AND DIABETES: Merck's cancer drug Keytruda saw sales of $249M in Q1 compared with $83M the year before. According to a Wall Street Journal article from May 5, Merck is in the process of expanding the drug for a variety of cancers. Sales from Merck's diabetes franchise Januvia and Janumet increased 4% in the quarter. 4. PIPELINE HIGHLIGHTS: In Q1, Merck advanced its development program for Keytruda an anti-PD-1 therapy for the treatment of metastatic non-small cell lung cancer in previously treated patients whose tumors express PD-L1, as well as advanced melanoma. Also in Q1, The FDA approved Zepatier, a once-daily, fixed-dose combination tablet for the treatment of adult patients with chronic hepatitis C virus genotype GT1 or GT4 infection, with or without ribavirin.