NEW YORK (Reuters) - Merck & Co (MRK.)(N) reported higher than expected quarterly profit, helped by trimming its research spending and the strong sales of its drug for diabetes, asthma and rheumatoid arthritis.
The second U.S. drugmaker, whose actions were 0.3 per cent higher, also slightly raised the lower end of its 2011 earnings forecasts.
"Overall, we are pleased with today's results, particularly in a difficult fourth quarter when the company withdrew its long-term direction," JP Morgan analyst said Chris Schott.
Merck in shaken February its profit from 2009 to 2013, rather than research chop expenditures to meet its goal of long date to a figure of-high annual growth over the forecast period.
However, the company has been cutting $ 350 million in spending during the first quarter, of which 107 million for research and development.
Friday, Merck trimmed its R & d throughout the year forecasts between 8 billion and $ 8.4 billion, from its previous point of view of 8.1 billion to $ 8.5 billion.
Which still maintains Merck among the best of the pack when it comes to industry spending on the development of drugs.
"Whatever be it 8.4 billion dollars or $ 8.5 billion." The essential is that its a very large number and shows how committed Merck is to research and development of its own drugs, "stated Peter Jankovskis, co-leader of the investment of OakBrook Investments LLC."
Earlier this year, over arch-rival Pfizer Inc. (PFE).(N) reduced its R & D budget to deliver on profit forecasts. It remains to see if big R & D cuts are long-term sense for Pfizer and other companies desperately need new drugs as their main drugs lose patent protection.
Merck received $ 1.04 billion, or 34 cents per share. Comparing with 299 million, or 9 cents per share, a year earlier, when it took a number of great expense and a tax expenditure linked to the U.S. health care reform.
Excluding special items, Merck received 92 cents per share. Analysts should on average 84 cents, according to Thomson Reuters I/B/E s.
"Merck seeks very strong", said Jankovskis, who added that surging sales of diabetes more recent Januvia and Janumet bodes well for Merck medicines.
"They're growing faster than expected and the high rate of diabetes in the United States help in time," said Jankovskis.
Global turnover of 11.58 billion in average of 11.37 billion analysts forecast head.
Sales stir-fry Januvia 45 percent to $ 739 million, while Janumet - what Januvia pairs with metformin for diabetes - climbed 52 percent of $ 305 million.
Sales of major products of Merck, Singulair asthma, jumped 14 percent 1.33 billion $, helped by sales in emerging markets and Japan. But the importance of the pill to Merck fade in the coming months, when he faces generic competition to the United States.
Sales of arthritis treatment Remicade has increased by 12% to $ 753 million. Merck has acquired it, and a new drugs arthritis, Simponi, through its purchase of rival drugmaker Schering-Plough at the end of 2009.
Partner of long date of Schering-Plough Johnson & Johnson (JNJ)(N) had challenged Merck the right to continue selling both drugs for arthritis. But, under a contract concluded earlier this month with J & J, Merck retains the rights to sell in Europe and other territories which represent 70% of 2.8 billion dollars in annual sales that have been challenged.
The company expects earnings this year from $ 3.66 to $ 3.76 per share, excluding special items - the repositioning of 2 cents the lower end of its previous estimate. Reflecting profit growth of 7 to 10 per cent of 2010.
