NuvaRing’s revenue trends
In 2Q17, Merck’s (MRK) NuvaRing[1. etonogestrel/ethinyl estradiol vaginal ring] generated revenues of ~$199 million, which is an ~1% decline on a year-over-year (or YoY) basis and 24% growth on a quarter-over-quarter basis. In 1H17, NuvaRing reported revenues of ~$359 million, which is an ~4% decline on a YoY basis.
The lower sales of NuvaRing in the US is primarily attributed to the decline in revenues, which was partially offset by higher pricing in 1H17.
In 2Q17, Implanon (etonogestrel implant) generated revenues of ~$178 million, which reflected ~9% growth YoY and 5% growth on a quarter-over-quarter basis. In 1H17, Implanon generated revenues of around $349 million, which reflects 17% growth on a YoY basis.
Its revenue growth in 1H17 was primarily driven by higher pricing and increased sales volume in the United States. However, foreign exchange unfavorably affected around 1% of Implanon’s global sales.
In 2Q17, Follistim AQ generated revenues of around $79 million, which represents ~8% growth on a YoY basis and a 2% decline on a quarter-over-quarter basis.
Merck’s Animal Health segment
In 2Q17, Merck’s Animal Health segment generated revenues of ~$955 million, which reflected ~6% growth on a YoY basis and ~2% growth on a quarter-over-quarter basis. In 2Q17, Merck’s Animal Health segment had 1% unfavorable impact due to foreign exchange. In 1H17, this segment reported revenues of ~$1.9 billion, representing ~10% growth on a YoY basis.
Higher sales of companion animal products, growth in sales of the Bravecto line of products, and higher sales of ruminant products contributed to the revenue growth of Merck’s Animal Health portfolio.
In August 2017, Merck Animal Health announced its plans to purchase a new manufacturing facility in Krems an der Donau, Austria, to expand the company’s vaccine manufacturing capacity.
Merck’s peers in the animal health space include Sanofi (SNY) through its subsidiary Merial, Bayer (BAYZF), Eli Lilly through its subsidiary Elanco, Pfizer (PFE) through its subsidiary Zoetis, Boehringer Ingelheim Vetmedica, and Virbac. The Vanguard S&P 500 ETF (VOO) invests 1.3% of its total portfolio holdings in Merck.