Merck Cuts Pharma Revenue Guidance By $1.7bn Due To Pandemic

 
• By Joseph Haas
  
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Overall, the pharma lowered its 2020 revenue guidance by $2.5bn at the midpoint, but also says it will save about $400m on SG&A expenses. Pandemic impacts expected mainly in Q2, normal resumption in Q4.

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Merck enjoyed a strong first quarter but expects pandemic-related downturn in the second and third quarters

Merck & Co. Inc. became the first of the big pharmas to reduce its 2020 revenue guidance due to the novel coronavirus pandemic, announcing on 28 April that it anticipates a $1.7bn hit to pharmaceutical sales this year, with the damage confined mainly to the second quarter. Overall, the pharma reduced its revenue guidance by $2.5bn at the midpoint, including a decline in its animal health business and the impact of foreign exchange.

The pandemic’s impact was negligible during the first quarter, with “pushes and pulls across our divisions and regions,” chief financial...

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