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Merck & Co.’s Animal Health Segment’s 1Q17 Revenues

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Animal Health segment

Merck & Co.’s (MRK) Animal Health segment operates in more than 140 countries. The global revenues from its Animal Health business, including pharmaceuticals and vaccines for animal use, totaled $939 million during 1Q17—13% growth over 1Q16.

The chart below shows revenues of the Animal Health segment since 1Q15.

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Revenues

Merck’s Animal Health segment reported growth in its 1Q17 revenues. This growth followed increased sales of its companion animal products, including Bravetco. The contribution of the Animal Health segment increased to 10% of the total revenues during 1Q17, compared to 1Q16.

Companion animal products are used by pet owners and veterinarians to provide a healthy life to pets. As one of this segment’s key products, Bravecto is a chewable tablet that kills fleas and ticks in dogs for up to 12 weeks. Other products for companion animals include Activyl, Nobivac, Panacur, Scalibor, veterinary insulin Vetsulin, and several eye and ear products.

Merck (MRK) also has aquaculture and swine products in its Animal Health portfolio. The aquaculture products include Aquaflor, Aquavac, and Slice. These products are used for maximizing fish growth, fish survival, and the production of farmed fish.

The company’s swine products include Circumvent PCV, Regumate, Respig, and Zuprevo. These products help pork producers improve the health of pigs for better-quality pork.

In 1Q17, Merck acquired a controlling stake in Vallee S.A., a private company from Brazil, in order to strengthen its Animal Health portfolio.

For diversified industry exposure, investors can consider the PowerShares Dynamic Large Value ETF (PWV), which holds 3.3% of its total assets in Merck. PWV also holds 3.6% in Johnson & Johnson (JNJ), 3.3% in Pfizer (PFE), and 3.1% in Amgen (AMGN).

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