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Behind Merck’s Diversified Brands: A Post-4Q17 Update

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Respiratory brands’ revenue trends

In 4Q17, Merck’s (MRK) Singulair reported revenues of $182 million, which represents a ~135% decline on a YoY (year-over-year) basis and a 13% rise on a QoQ (quarter-over-quarter) basis. In fiscal 2017, Singulair reported revenues of $732 million, compared with $915 million in 2016, which reflected a ~20% YoY decline.

In 2017, in the US and in international markets, Singulair reported revenues of $40 million and $692 million, respectively. Foreign exchanges unfavorably affected Singulair sales by 1% in 2017, but increased competition from the generic versions of the drug and lower sales in Japan primarily attributed to the decline of revenues of Singulair.

Singulair (montelukast sodium) is used for prevention and treatment of asthma. Singulair also finds its use in symptomatic relief from allergic rhinitis. In the marketplace, Singulair’s peer includes AstraZeneca’s (AZN) Accolate.

In 4Q17, Merck’s Nasonex generated revenues of $120 million, which represents a ~7% rise on a YoY basis. In 2017, Nasonex reported revenues of $387 million, compared with $537 million in 2016, which reflected a ~28% decline on a YoY basis.

Nasonex is used for the treatment of nasal allergy symptoms. Increased competition due to the availability of the generic versions of the drug primarily attributed to the decline of revenues.

In 4Q17, Merck’s Dulera generated revenues of $77 million, which represents a ~27% decline on a YoY basis and 31% growth quarter-over-quarter. In 2017, Dulera generated revenues of $287 million, compared with $436 million in 2016, which represents a ~34% YoY rise.

Dulera is an inhalational aerosol indicted for the treatment of asthma. In the asthma drugs market, Dulera’s peers include AstraZeneca’s Pulmicort and Symbicort, GlaxoSmithKline’s (GSK) Flovent, and Teva Pharmaceuticals’ (TEVA) QVAR.

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Other diversified brands’ revenue trends

In 4Q17, Merck’s Cozaar reported revenues of $125 million, which represents a ~3% rise on a YoY basis and 2% decline on a QoQ (quarter-over-quarter). In 2017, Cozaar reported revenues of $484 million, compared with $511 million in 2016, which reflected a ~5% YoY decline.

In 4Q17, Arcoxia reported revenues of $91 million, which represents a ~16% decline on a YoY basis and a 14% rise on a QoQ basis. In 2017, Arcoxia reported revenues of $363 million, compared with $450 million in 2016, which was ~19% lower on a YoY basis.

In 4Q17, Merck’s Fosamax generated revenues of $62 million, compared with $68 million in 4Q16, reflecting a ~9% decline on a YoY basis. In 2017, Fosamax generated revenues of $241 million, compared with $284 million in 2016, which reflected a ~15% YoY rise.

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