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Sales up, but Merck announces major restructuring effort
July 29, 2011
By: Gil Roth
Merck 2Q11 2Q Revenues: $12.2 billion (+7%) 2Q Earnings: $2.0 billion (+169%) YTD Revenues: $23.7 billion (+4%) YTD Earnings: $3.1 billion (+181%) Comments: Sales growth in 2Q was driven by big jumps in Remicade (+26% to $842 million), Januvia (+30% to $779 million) and Janumet (+47% to $321 million), offsetting losses in Cozaar/Hyzaar (-16% to $406 million). Earnings took a big jump, due to restructuring charges in 2Q10. Singulair sales rose 8% to $1.4 billion during its last full year of patent protection. Merck announced a new restructuring plan, and will lay off more than 10,000 people to gain $1.5 billion in annual savings by 2015.
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