Merck (MRK) Stock Declines in Pre-Market Trading on Q4 Revenue Miss

Merck & Co.’s top-selling and closely watched diabetes drugs missed analysts’ expectations in the fourth quarter, and the company offered guidance for 2016 with a low end of its range that fell short of estimates. Revenue, however, dipped 3 percent.

Sales were negatively impacted by foreign exchange and the company’s acquisition of Cubist Pharmaceuticals, according to Merck. Merck said the decrease was expected and driven by the timing of purchases.

Sales of Remicade, a treatment for inflammatory diseases, decreased 29% due to loss of exclusivity and the accelerating impact of competition by biosimilar drugs.

Revenue totaled $10.2 billion, below the $10.45 billion analysts expected.

Additionally, the company said it expects 2016 earnings in the range of $3.60 per share to $3.75 per share, compared to analysts’ forecasts for full-year earnings of $3.72 per share. (MRK – Get Report) stock is down by 1.57% to $49.61 in pre-market trading on Wednesday, after the health care company reported its 2015 fourth quarter earnings results.

Merck’s new hepatitis C drug was approved in January for use in adult patients with genotype 1 and 4 infections, and the company priced it at $54,600 for a 12-week regimen.

The quarter’s pharmaceutical revenue fell 3.7% to $9.03 billion, including an 8% negative impact from currency fluctuations. That was boosted by a $10.6 billion gain from selling Merck’s consumer to Bayer AG for $11.2 billion, minus a $628 million debt-related loss.

“We will continue to invest resources to launch and grow our strongest brands, support the most promising internal assets, enhance our pipeline with the best available external science and maintain a balanced and differentiated portfolio with the goal of delivering long-term growth and shareholder value”, Merck Chairman and CEO Kenneth Frazier said.