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Merck’s 4Q17 Estimates: Pharmaceutical Segment

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Jan. 31 2018, Updated 2:55 p.m. ET

Merck’s Pharmaceutical segment

Merck & Co.’s (MRK) Pharmaceutical segment includes drugs and vaccines. Its products are for the therapeutic areas of oncology, diabetes, primary care, hospital acute care, immunology, cardiovascular, and women’s health. We’ll look at the segment’s vaccines in the next part of this series.

The above chart compares revenues for the Pharmaceutical segment since 1Q16.

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Diabetes products

Merck’s diabetes products portfolio includes Januvia and Janumet. The diabetes portfolio is expected to report a decline in operating revenues in 4Q17 due to lower sales of Janumet.

Cardiovascular products

Merck’s cardiovascular products portfolio includes four drugs: Atozet, Adempas, Zetia, and Vytorin. Cardiovascular products are expected to report a decline in operating revenues in 4Q17 due to lower sales of Zetia and Vytorin, partially offset by strong sales of Adempas and Atozet.

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Immunology products  

Merck’s immunology product portfolio includes Remicade and Simponi. Merck holds marketing rights for Remicade only in the European markets, while Johnson & Johnson (JNJ) hold marketing rights for Remicade for major countries outside of Europe. Remicade is expected to report a decline in revenues in 4Q17 due to the loss of exclusivity and competition from generic products and biosimilars. Simponi is expected to report growth in revenues in 4Q17 due to a strong demand for the drug.

Immuno-oncology products

Merck’s immuno-oncology portfolio includes one of its key products: Keytruda. Launched in 2014, Keytruda is approved for various forms of cancer, and sales are expected to be more than $1 billion in 4Q17 driven by strong demand. The increase in Keytruda revenues is expected to drive the overall revenues for immuno-oncology products in 4Q17.

The iShares Global 100 (IOO) holds 12.2% of its total investments in healthcare companies. IOO holds 1.3% in Merck & Co. (MRK), 0.8% in Bristol-Myers Squibb (BMY), 0.8% in Sanofi (SNY), and 0.7% in GlaxoSmithKline (GSK).

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