Merck (NYSE:MRK) beat analyst earnings estimates this morning, posting $1.05 per share compared to average expectations of $1.01. The company increased its revenue from last year’s second quarter by 1.3% to $12.3 billion, however, net income fell by 11%.
Merck will lose exclusivity on its asthma treatment Singulair in August and has been strategizing and restructuring accordingly. The company cut jobs this year and increased R&D spending dramatically since the arrival of CEO Kenneth Frazier last year. Merck says they expect six major FDA filings in the next year and a half. Shares are up 3%, however they may trade down early next month with the loss of Singulair. Expect long-term growth from Merck as catalysts emerge from their product pipeline in the next year. The company maintains its earnings forecast for 2012 at $3.75 to $3.85 per share.