Merck revenue grows, but net income dips

Merck said its second-quarter revenue increased slightly, while net income dropped slightly.

In announcing the results, Merck said its sales revenue increased about one percent, from $12.151 billion in 2011 to $12.311 billion in the second quarter of 2012, which ended on June 30.

The net income fell from $2.024 billion in 2011 to $1.793 billion in the same period.

Merck is based in Whitehouse Station, N.J., and has a big operation in West Point, Montgomery County.

The second-quarter pharmaceutical sales revenue increased two percent to $10.6 billion, including a three percent negative impact due to foreign exchange.

The diabetes drugs Januvia and Janumet had the largest percentage growth. Januvia sales rose from $779 million to $1.058 billion, a 36 percent increase.

Asthma drug Singular was the top selling Merck drug, with $1.4 billion in sales, but that leadership spot will change by the end of the third quarter.

Singular loses patent protection next week. Merck executive vice president and president for global human health Adam Schechter said the company expects multiple generic companies to enter the market immediately, with declining Singular sales revenue being the result.

"It will be rapid and it will be significant," Schechter said.

CFO Peter Kellogg said the loss of high-margin profits from Singular will lower the expected gross profit margin for the rest of the year.

A link to Merck's announcement with numbers is here.