Saturday, July 29, 2017

Merck's Remaining 2017 Outlook To Be Moderately Impacted by April Hack Attack

Merck will be fine -- and it has done well, through the end of Q2 2017. [Backgrounder on the attack here.] But some of the vaccine supply tightness we mentioned here may be the result of the below.

From the transcript, at SeekingAlpha, and then from Reuters:

. . . ."Thank you, Darla. . ." Roger M. Perlmutter - Merck & Co., Inc. -- As Ken has outlined, the malware that infected our computational environment had a very substantial effect on our activities during the last few days of the quarter. However, in the following weeks, through a very substantial effort by both IT and MRL personnel, we've been able to maintain our clinical trial execution plan. And although there's still a great deal of restoration work to do, we continue on track to complete previously outlined priorities for the year. . . .

[And Reuters. . . .] The company said it does not yet understand the full magnitude of the impact as it is in the process of restoring manufacturing operations. It disclosed the attack last month, but did not disclose the manufacturing shutdown at the time.

Merck said it was confident that it will be able to maintain a continuous supply of its top-selling and life-saving drugs, including cancer drug Keytruda, diabetes drug Januvia and hepatitis C drug Zepatier. But it warned of temporary delays in delivering some other products, which it did not identify.

"Full recovery from the cyber-attack will take some time, but we are making steady progress," Chief Executive Ken Frazier said on a conference call as the company reported quarterly results. . . .

Now you know. And on a clear, cool Saturday morning, here -- I am saying a fond, final goodbye -- to a furry friend of over a decade, now. Fly free, oh Tai Ou. . . . the Universe has called you back to star stuff, now. Whoosh. . . .


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