The company outlined three broad areas where it expects to improve its performance. First, of course, is cutting costs and allocating resources where potential paybacks are largest. Under this heading comes maintaining a “high level of cash returned to shareholders” in dividends and stock buybacks.
Second, Merck says it plans to sharpen its commercial focus and increase its geographic focus on 10 prioritized markets: the United States, Japan, France, Germany, Canada, the United Kingdom, China, Brazil, Russia and Korea.
Third, the company will prioritize its R&D efforts “to focus on [drug] candidates capable of providing unambiguous, promotable advantages to patients and payers.”
Merck reiterated its full-year adjusted earnings per share guidance of $3.45 to $3.55. The company expects to take restructuring charges totaling $900 million to $1.1 billion in its third quarter.
Merck’s shares are up 2.7% in premarket trading this morning, at $48.95 in a 52-week range of $40.02 to $50.16. The Thomson/First Call consensus price target for the shares is around $51.80.
Sponsored: Attention Savvy Investors: Speak to 3 Financial Experts – FREE
Ever wanted an extra set of eyes on an investment you’re considering? Now you can speak with up to 3 financial experts in your area for FREE. By simply
clicking here you can begin to match with financial professionals who can help guide you through the financial decisions you’re making. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.