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Merck’s Hospital Acute Care Business: A Post-2Q17 Update

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Bridion’s revenue trends

In 2Q17, Merck’s (MRK) Bridion generated revenues of ~$163 million, which reflected ~44% growth on a year-over-year (or YoY) basis and 10% growth on a quarter-over-quarter basis.

In 1H17, Bridion reported revenues of ~$310 million, which represents ~52% growth YoY. The growth in sales volume in the US was mostly driven by the revenue growth of Bridion in 2Q17.

The chart above represents the revenue curve of Merck’s Hospital Acute Care portfolio from 2Q16 to 2Q17. To read more about Brindon and Merck’s Hospital Acute Care business, please refer to Bridion Could Drive Merck’s Acute Hospital Care Franchise in 2017.

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Invanz’s revenue trends

In 2Q17, Invanz (ertapenem sodium) generated revenues of around $150 million, which reflected ~5% growth YoY and 10% growth quarter-over-quarter. In 1H17, Invanz reported revenues of around $286 million, which represents ~11% growth on a YoY basis.

The higher pricing in the US primarily contributed to its 2Q17 and 1H17 revenue growth. In the US market, Invanz generated revenues of ~$175 million in 1H17.

Merck’s patent that provides market exclusivity to the company for sales of Invanz in the US is scheduled to expire in November 2017. After that, Merck’s Invanz could witness a drop in revenues if generic versions of the drug are launched.

Cancidas’s revenue trends

In 2Q17, Cancidas (caspofungin acetate) generated revenues of around $112 million, which is an ~15% decline on a YoY basis and a 7% decline on a quarter-over-quarter basis. In 1H17, Cancidas generated revenues of ~$233 million, which reflected an ~12% decline YoY.

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Cubicin’s revenue trends

In 2Q17, Merck’s Cubicin generated revenues of around $103 million, which reflects a whopping ~71% decline on a YoY basis and ~7% growth on a quarter-over-quarter basis. In 1H17, Cubicin generated revenues of around $198 million, which is an ~69% decline YoY.

Primaxin’s revenue trends

In 2Q17, Primaxin generated revenues of around $71 million, which is a 12% decline YoY and 15% growth on a quarter-over-quarter basis.

Noxafil’s revenue trends

In 2Q17, Noxafil generated revenues of around $155 million, which reflected 8% growth on a YoY basis and 10% growth on a quarter-over-quarter basis.

Merck’s peers in the hospital acute care sector include GlaxoSmithKline(GSK), Novartis (NVS), Johnson & Johnson (JNJ), Teva Pharmaceuticals, and AstraZeneca. Merck comprises ~1.8% of the Vanguard High Dividend Yield ETF (VYM).

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