Merck & Co. posted a 15% jump...
Merck & Co. posted a 15% jump in profits on a huge increase in revenue that stemmed from its managed care business.
Whitehouse Station, N.J.-based pharmaceutical firm Merck said it earned $773.0 million, or 61 cents a share, in the fourth quarter of last year, compared with earnings of $674.2 million, or 56 cents a share, a year earlier. Sales soared to $3.9 billion from $3.0 billion.
For all of 1994, it reported profits of $3.0 billion, or $2.38 a share, compared to earnings of $2.2 billion, or $1.87 a share, in 1993. Sales jumped to $15.0 billion from $10.5 billion. “Sales growth for the quarter and the year was led by newer products and the continued growth of the Merck-Medco Managed Care business,” said Raymond Gilmartin, Merck chairman, president and chief executive officer. Merck-Medco manages more than 40 million pharmaceutical drug plans.
Sales outside the United States accounted for 32% of last year’s revenue, compared to 44% in 1993.