Media Coverage

More bumper growth from Merck as Q2 reflects continuing Bravecto prominence

Jul 27, 2018 - Animal Pharm
By Joseph Harvey

Merck Animal Health's second-quarter sales came to $1.09 billion – a year-on-year increase of 14%.

Growth was the result of higher revenues from companion animal products, primarily from the Bravecto (fluralaner) line – a constant top performer for Merck in recent years. Bravecto's good performance in Q2 was attributed to "a delayed flea and tick season, and the timing of customer purchases".

The firm's wider companion animal segment reported a 23% increase in sales to $457 million.

Merck's livestock products were also a contributor to growth (+9% to $633m), while the second-quarter performance included a 2% positive impact from foreign exchange rates.

The animal health business also posted profits of $450m in Q2. This is a 14% improvement compared with the same period in 2017.

The company has maintained its strong double-digit growth, which was a feature of its Q1 performance. Merck also recorded its highest ever quarterly animal health sales. Last year, it reported quarterly animal health revenues in excess of $1bn for the first time.

During the first half of 2018, Merck's animal health sales have risen 14% to $2.155bn. Sales of livestock products climbed 11% to $1.286bn and revenues from pet products went up 19% to $869m.

If Merck continues to report this type of growth rate for the remainder of 2018, not only will it record double-digit growth for the second year in a row but it will also become the third animal health company to go beyond the $4bn mark for annual turnover.

Ongoing label additions and lifecycle management have helped Bravecto become a star performer for the company in recent years, as its companion animal division has expanded. Recently, the firm gained European approval for Bravecto Plus for cats.

Merck chairman and chief executive Kenneth Frazier called animal health a key pillar of growth for the group, backing comments made earlier this year that highlighted the firm's commitment.

Reprinted with permission of Animal Pharm News




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