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.
Cash Back Credit Cards Have Never Been This Good
Credit card companies are at war, handing out free rewards and benefits to win the best customers. A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges. See our top picks for the best credit cards today. You won’t want to miss some of these offers.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.