Burlington-based LabCorp, Merck and Novartis have released their latest earnings. Here’s a recap.
- LabCorp earnings lower than expected
Laboratory Corp. of America Holdings reported third-quarter net earnings Wednesday that missed Wall Street expectations.
Net earnings in the quarter were $179.5 million, compared to $154.7 million in the third quarter of 2015. Diluted earnings per shares were $1.71 in the period, an increase of 14 percent. Adjusted earnings per shares stood at $2.25, up 9 percent over last year.
Analysts expected earnings to amount to $2.29 per share.
Its stock fell by more than 6 percent in Wednesday morning trading. It was trading at $129.70, down $8.71.
The laboratory network reported net revenue of $2.37 billion, up 4.5 percent compared with the same period last year. The company attributed the rise to the acquisitions and organic growth.
“We remain confident in our outlook for the balance of the year and our positioning for long-term profitable growth, as we deliver proprietary solutions that address our customers’ greatest needs, and improve the health and lives of patients around the globe,” said David King, chairman and chief executive officer, in a statement.
Headquartered in Burlington, LabCorp more than 48,000 people.
- Merck profits jump 20 percent
Higher sales of vaccines and prescription medicines, coupled with restrained spending, helped Merck & Co. post a 20 percent jump in third-quarter profit, trouncing Wall Street expectations.
The maker of Januvia diabetes pills raised and narrowed its 2016 financial forecasts, but noted some headwinds, including the start of U.S. generic competition to three drugs by year’s end.
Its shares edged higher in midday trading Tuesday.
The second-biggest U.S. drugmaker is in transition, with revenue from older products such as immune disorder treatment Remicade and the Dulera asthma inhaler leveling off or falling amid increased competition. But sales are building for drugs launched since 2014, particularly immuno-oncology drug Keytruda and hepatitis C-curing Zepatier.
Meanwhile, Zinplava for preventing recurrence of life-threatening C. difficile infections was approved Friday in the U.S., and Merck plans to apply soon for approval of experimental diabetes drug ertugliflozin and additional uses for Keytruda, its newest blockbuster, with more than $1 billion in sales over the past four quarters.
In addition, chief executive Ken Frazier told analysts during a conference call that deals to boost Merck’s pipeline of experimental drugs, with a focus on small -to-midsized assets that fit well within its business, are a priority. He noted Merck is calling attention to the innovation of its medicines amid the U.S. political furor over soaring drug prices.
- Novartis net profit drops
Swiss drug company Novartis saw net profit slip in the third quarter as the loss of a key drug to generic use in the United States outweighed strong sales of its psoriasis drug Cosentyx and MS treatment Gilenya.
Core net income fell 2 percent to $2.94 billion from $2.99 billion in the previous-year quarter. The loss of Gleevec, used to treat chronic myeloid leukemia, to generic use hurt sales revenue.
Gilenya, a medicine for relapsing multiple sclerosis, brought in $790 million, an increase of 15 percent.
The company said that Cosentyx, with $301 million in sales, was “on track for blockbuster status” in its first full year after approval.