[Even as the Prometheus M&A charges swung the company to a one time GAAP quarterly loss, that one time mostly non-cash burn was widely expected, and as we reported in March of 2023, the addition of Promethus will pay dividends for Merck shareholders, for decades to come, in all probability.]
Here is one positive sales line surprise -- Gardasil -- so do go read it all:
. . .Gardasil, a vaccine that prevents HPV, saw a 47% increase in quarterly sales, primarily due to increased demand in China. The drugmaker raised its full-year sales guidance to $58.6 billion to $59.6 billion from the earlier range that topped out at $58.9 billion. . . .
Merck swung to a net loss of $5.98 billion, or $2.35 per share, from a net income of $3.94 billion, or $1.55 per share, during the year-earlier period. Excluding acquisition and restructuring costs, Merck’s loss per share was $2.06 for the quarter.
The loss reflects a $10.2 billion, or $4.02 per share, charge related to the company’s acquisition of Prometheus, which specializes in treatments for autoimmune diseases. Merck said it completed the deal in mid-June. . . .
Smile. . . it has become the standing orthodoxy (for Wall Street analysts) that companies in the multinational pharma space will rapidly write off most R&D bolt-on acquisitions' IP related intangible asset values.
[This avoids a later, larger write-down, if the tech acquired fails to deliver.] And that "pre-baking" is precisely what Merck has done with Prometheus in the second quarter report.
So, now you know, at a decade and eleven on, returning and replying each time.
नमस्ते
No comments:
Post a Comment