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A Performance Overview of Merck’s Virology and Immunology Drugs

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Virology revenue trends

In the second quarter of 2018, Merck’s (MRK) Zepatier generated revenues of $113.0 million compared to $517.0 million in the second quarter of 2017, reflecting a ~78% year-over-year (or YoY) decline and a ~14% decline sequentially. In the first half of 2018, Zepatier generated revenues of $243.0 million, reflecting a ~73% YoY decline.

The increasing market competition and decreasing patient volume primarily led to the decline of Zepatier sales. Merck anticipates that the declining trend for Zepatier sales will continue. In the second quarter, Isentress generated revenues of $305.0 million compared to $282.0 million in Q2 2017, reflecting ~8% YoY growth and ~9% growth sequentially.

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Merck’s Zepatier faces stiff competition from AbbVie’s (ABBV) Viekira Pak and Technivie, Gilead Sciences’ (GILD) Harvoni, and Bristol-Myers Squibb’s (BMY) Daklinza. In the second quarter of 2018, Gilead Sciences’ Harvoni generated revenues of $331.0 million, while AbbVie’s (ABBV) HCV portfolio generated revenues of $973.0 million.

In the second quarter of 2018, in the US and international markets, Isentress generated revenues of $132.0 million and $174.0 million, respectively, reflecting a ~3% decline and ~19% growth on a YoY basis. In the first half of 2018, Isentress reported revenues of $586.0 million. Isentress revenues remained flat in the first half of 2018 compared to the first half of 2017.

Immunology revenue trends

Merck’s Remicade generated revenues of $157.0 million in the second quarter of 2018, reflecting a ~25% YoY decline and a 6% decline sequentially. In the first half of 2018, Remicade generated revenues of $324.0 million, which represented a ~26% YoY decline.

Simponi revenue grew 17% to reach $233.0 million in the second quarter of 2018 from $199.0 million in the second quarter of 2017. In the first half of 2018, Simponi generated revenues of $464 million, reflecting ~21% YoY growth.

In the second quarter of 2018, Johnson & Johnson (JNJ) generated revenues of $1.3 billion and $548.0 million from the sales of Remicade and Simponi, respectively. In the first half of 2018, Johnson & Johnson reported revenues of $2.7 billion and $1.1 billion from the sales of Remicade and Simponi, respectively.

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