Merck’s Animal Health Business Witnessed Solid Growth in 1H 2018

Revenue trends

In the second quarter of 2018, Merck’s (MRK) Animal Health business generated revenues of $1.1 billion compared to $955.0 million in the second quarter of 2017, reflecting ~14% growth on a year-over-year (or YoY) basis and 2% growth sequentially. In the second quarter of 2018, in the US market and international markets (outside the U.S. markets), Merck’s Animal Health business generated revenues of $311.0 million and $779.0 million, respectively, reflecting ~15% and ~14% YoY growth.

In the first half of 2018, Merck’s Animal Health business generated revenues of $2.2 billion compared to $1.9 billion in the first half of 2017, reflecting ~14% YoY growth. Merck’s Animal Health generated revenues of $618.0 million and $1.5 billion from sales in the US and international markets, respectively, in the first half of 2017, reflecting ~12% and 15% YoY growth.

Merck’s Animal Health Business Witnessed Solid Growth in 1H 2018

Livestock segment revenue trends

In the second quarter of 2018, in Merck’s Animal Health business, the livestock segment generated revenues of $633.0 million, reflecting ~9% YoY growth. In the US and international markets in Q2 2018, Merck’s livestock segment generated revenues of $107.0 million and $526.0 million, respectively, reflecting ~4% and ~10% YoY growth. In the first half of 2018, Merck’s livestock segment generated revenues of $1.3 billion reflecting ~11% YoY growth.

Companion Animal Health segment revenue trends

In the second quarter of 2018, in Merck’s Animal Health business, the companion animals health segment generated revenues of $457.0 million, reflecting ~23% YoY growth. In the US and international markets, the companion animal health segment generated revenues of $204.0 million and $253.0 million, respectively, reflecting ~22% and 23% YoY growth. In the first half of 2018, Merck’s companion animal health segment generated revenues of $869.0 million, reflecting ~18% YoY growth.

Recent developments

In June 2018, Merck Animal Health entered a strategic partnership agreement with Vinovo BV, which is a division of Viscon Hatchery Automation. Merck and Viscon Hatchery Automary entered a partnership to bring together Merck’s Animal vaccine products and Vinovo’s new vaccine delivery system for safety and effective vaccination, which will help provide bird welfare, decrease vaccine reaction, and provide more protection for chickens.

Notably, Merck’s peer in the animal healthcare market, Eli Lilly’s (LLY) Animal Health reported revenues of $792.1 million in the second quarter of 2018. Also, Merck’s peers Idexx Laboratories (IDXX) and Zoetis (ZTS) reported revenues $537.66 million and $1.4 billion, respectively, in Q1 2018.