Friday, October 23, 2009
Brian Orelli :: Townhall.com Columnist
Merck-Schering Doesn't Look So Good
by Brian Orelli
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Merck (NYSE: MRK) and Schering-Plough (NYSE: SGP) reported earnings as separate companies for likely the last time yesterday, but that doesn't mean investors and Foolish analysts need to treat them separately. Here's what the companies might have looked like if they were already combined.

Combined sales would have been essentially flat, excluding the joint ventures Merck has with Johnson & Johnson (NYSE: JNJ), sanofi-aventis (NYSE: SNY), and AstraZeneca , but including sales of its joint venture with Schering-Plough. Technically, sales were down 0.4%, but we're getting close to rounding error at that level.

The way you get to the flat sales isn't pretty, though. Look at the top 10 franchises:

Drug

Sales (in millions)

Year-over-year increase (decrease)

Singulair

$1,085

5%

Zetia and Vytorin

$1,028

(7%)

Cozaar and Hyzaar

$861

(3%)

Januvia and Janumet

$664

39%

Remicade

$608

8%

Gardasil

$311*

(22%)

Nasonex

$266 Continued...

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About The Author

Brian Orelli is a Motley Fool contributor.

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