US drugmaker Merck sees bigger hit to 2021 sales from pandemic
Apr 29, 2021 10:40 PM PHT
Reuters
Merck & Co. said on Thursday, April 29, it would take a bigger hit to sales this year than previously expected due to a resurgence in COVID-19 cases that has hurt demand for drugs that need to be given by doctors.
The pandemic is expected to shave 3% from overall sales, more than the previously projected 2%, after it resulted in a $600-million hit to Merck s 1st quarter sales.
Merck shares fell 3.1% to $74.73 after the company also missed 1st quarter earnings estimates.
The surge in COVID-19 cases in the quarter took a particularly heavy toll on Merck s sales as roughly two-thirds of its products are hospital administered, and a lack of routine health checkups likely led to lower detection of other diseases.
Operator
Good morning. My name is Lara and I will be your conference operator today. At this time, I would like to welcome everyone to Merck & Co. Q1 sales and earnings conference call.
[Operator instructions] After the speakers remarks, there will be a question-and-answer session. [Operator instructions] Thank you. I would now like to turn the call over to Peter Dannenbaum, vice president, investor relations. Sir, please go ahead.
Peter Dannenbaum
Vice President, Investor Relations
Thank you, Lara, and good morning. Welcome to Merck s first-quarter 2021 conference call. Today I m joined by Kenneth Frazier, our chairman and chief executive officer; Rob Davis, our president; Dr. Dean Li, president of Merck Research Labs; Frank Clyburn, president of human health; and Caroline Litchfield, chief financial officer.
Dive Brief:
Sales of vaccines for shingles, human papillomavirus and bacterial pneumonia slowed considerably over the first three months of the year, according to financial results disclosed this week by Merck & Co. and GlaxoSmithKline.
Both companies blamed the impact of COVID-19 on doctor s visits and routine vaccinations, citing lowered demand and disruption from public health guidance recommending against giving other shots within two weeks before and after coronavirus vaccination.
Merck and GSK are two of the world s largest vaccine makers. Yet they ve either fallen behind (in the case of GSK) or fallen out (in the case of Merck) of coronavirus vaccine development, leaving them without the financial boost that s lifted the businesses of Pfizer, Moderna and, to much lesser extent, AstraZeneca and Johnson & Johnson.
by Wire, staff reports April 29, 2021 .
DURHAM – Merck is entering a new era, with sweeping changes across its executive suite and the spinoff off its women’s health and other businesses, a bid to enable both resulting companies to grow faster.
The drug giant has a significant presence in Durham and announced a significant expansion last October.
The massive management makeover, mostly triggered by longtime Chief Executive Ken Frazier’s upcoming retirement, occurs as the drugmaker says hits to sales of many of its medicines amid lockdowns and other impacts from the coronavirus pandemic will lessen and sales will rise over the rest of the year.