Boston, MA 03/18/2014 (wallstreetpr) – Even as several new pharmacy companies are reporting new inventions that may boost their image as well as revenue biggies like Merck & Co., Inc. (NYSE:MRK) are clearly struggling to retain their hold. As per the Q4 results of FY 13, MRK’s revenue slid to $11.30 billion for the quarter which was down 3.6% compared to the same quarter last year. It’s GAAP EPS decreased by 13% to $0.26. Even as earning per share at $0.89 shows some improved (0.83in Q4 of FY12), market watchers are not confident that it can boost the margins for the company.
Officially Merck & Co., Inc. (NYSE:MRK) has put blame in dip in sales to fierce competition from cheaper generic medicines which is cutting in its lead in several segments. To add to its woes Merck’s stock in February 2014 faced rigorous insider selling with as much as 7 insiders selling their shareholding in Merck.
Furthermore, Merck & Co., Inc. (NYSE:MRK) may be asked to pay up to $100 million to settle thousands of litigation connected to the safety issues which arises due to the use of its contraceptive NuvaRing.
The performance of MRK’s animal health care division is also a good omen for the company as European Commission has given them marketing authorization for its veterinary medicinal product BRAVECTO™. If the single dose of chewable tablet for Dogs is taken it nearly kills fleas and ticks up to twelve weeks in dogs. Plans are already in pipeline to launch BRAVECTO™ in several European countries, like Germany, The Netherlands, United Kingdom, France, Spain and Italy, by the end of 2014. Yet troubles is also in store for this fledging business as its feed additive sold under the brand name Zilmax may be a suspected for deaths of several cattle. Animal care researchers blame Merck & Co., Inc. (NYSE:MRK) for covering up the Zilamax related deaths as a Reuters review showed that over a 6-year period, Merck only linked 285 cattle deaths to Zilmax. Merck has officially challenged the findings of USFDA and a review is underway at this point of time.
