Merck 2Q Profit Rises Despite Lower Revenue
31 Juli 2020 - 1:50PM
Dow Jones News
By Matt Grossman
Merck & Co. Inc. on Friday reported a larger profit in the
second quarter despite declining revenue, as the company progressed
on work towards treatments and vaccines for Covid-19.
The Kenilworth, N.J.-based pharmaceutical company said that the
pandemic dragged on revenue in the latest quarter as it reduced
people's non-Covid-19 health-care visits, putting pressure on
prescriptions. Selling, general and administrative costs, as well
as research and development expenses, were both lower in the
quarter for Merck, due in part to declines in marketing, travel and
meeting expenses.
Merck reported a second-quarter profit of $3 billion, or $1.18 a
share, compared with a profit of $2.67 billion, or $1.03 a share,
in the same three-month period a year earlier.
On an adjusted basis, Merck's profit was $1.37 a share. Analysts
polled by FactSet had expected second-quarter adjusted earnings of
$1.06 a share.
Merck's revenue in the quarter was $10.87 billion, down from
$11.76 billion a year earlier. Analysts had forecast revenue of
$10.4 billion.
Through partnerships with other companies and research
institutions, Merck is developing two vaccines to prevent
Covid-19--both of which are in pre-clinical development--as well as
an oral antiviral medication for the disease, which is in Phase 2
clinical trials.
Write to Matt Grossman at matt.grossman@wsj.com
(END) Dow Jones Newswires
July 31, 2020 07:35 ET (11:35 GMT)
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