18 Jul

Inside Merck’s Immunology Portfolio

WRITTEN BY Daniel Collins

Remicade’s revenue trends

In 2011, Johnson & Johnson (JNJ) and Merck (MRK) entered an agreement for the marketing rights of Remicade and Simponi. Johnson & Johnson commercializes the drug in Canada, Central and South America, the Middle East, Africa, and the Asia-Pacific region. Merck markets the drug in Europe, Russia, and Turkey.

In 2016, Remicade generated revenues of ~$1.3 billion, which reflected an ~29% decline year-over-year (or YoY). Merck lost marketing exclusivity for Remicade in most European markets in February 2015. Currently, Merck does not hold marketing exclusivity for Remicade in any regions around the world and hence, witnessed a gradual decline in sales due to competition with biosimilars.

In 1Q17, Remicade generated revenues of ~$229 million, which reflected an ~34% decline YoY and a 15% decline quarter-over-quarter.

Inside Merck’s Immunology Portfolio

Remicade (infliximab) is indicated for individuals with Crohn’s disease who did not have an adequate response to traditional therapy. It is also indicated for patients suffering from ulcerative colitis, rheumatoid arthritis, ankylosing spondylitis, psoriatic arthritis, and plaque psoriasis.

The chart above represents the revenue trends of Merck’s immunology drugs from 1Q16 to 1Q17. To learn more about Remicade, please read How Decline in Remicade Is Affecting Merck’s Immunology Revenues.

Simponi’s revenue trends

In 2016, Simponi generated revenues of around $766 million, which reflected ~11% growth YoY. The growth in sales in Europe primarily contributed to the drug’s overall revenues in 2016. In 1Q17, Simponi generated revenues of around $184 million, which is an ~2% decline YoY and a 1% decline quarter-over-quarter. The company estimated that an ~4% unfavorable effect from foreign exchange contributed to the slight decline in revenues.

Simponi (golimumab) is indicated in individuals with moderate to severe rheumatoid arthritis, psoriatic arthritis, ankylosing spondylitis, and moderate to severe ulcerative colitis.

Merck’s Immunology portfolio faces stiff competition from Amgen (AMGN)’s Enbrel, and AbbVie’s (ABBV) Humira.

Merck’s product sales may positively affect the the Vanguard Total Stock Market ETF (VTI). VTI makes up ~0.66% of Merck’s total portfolio holdings.

Latest articles

22 Jul

Economic Data and Earnings Before the Fed's Meeting

WRITTEN BY Mohit Oberoi, CFA

Economic data and earnings will keep investors busy this week. More than a quarter of the S&P 500 companies are scheduled to release their earnings.

22 Jul

Why UPS's Q2 Earnings Could Fall Year-over-Year

WRITTEN BY Anirudha Bhagat

UPS is scheduled to report its second-quarter earnings results on July 24. Estimates suggest that things aren't looking good for it this quarter.

Boeing (BA) plans to report its second-quarter 2019 results on July 24.

Hershey (HSY) is set to report its second-quarter results on Thursday. We expect Hershey’s sales and earnings to grow year-over-year, but that growth to be low.

22 Jul

Align Technology: What to Expect in Q2

WRITTEN BY Margaret Patrick

Align Technology (ALGN) plans to release its second-quarter earnings on July 24 after the market closes.

On July 19, Tilray was trading at a forward EV-to-sales multiple of 12.1x. The company was still trading at a premium to the peer median at 6.0x.