Merck falls on competition

October 28, 2013

The pharmaceutical giant said Q3 EPS fell 3.2% to 92 cents, but it still beat views by 4 cents. Revenue dipped 4% to $11.03 bil, falling short of views for $11.12 bil. Merck's (MRK) animal health unit saw a 2% drop in sales as it stopped marketing its Zilmax feed supplement over health concerns for cattle. Sales of its diabetes drug Januvia fell 5% to $927 mil as similar drugs from Bristol-Myers Squibb (BMY) and Eli Lilly (LLY) continue to take market share. Merck lowered its full-year EPS outlook to $3.48-$3.52. Implied Q4 guidance is 84-91 cents. Analysts are expecting 90 cents. Merck shares fell 2.6% to 45.35.