Irish-made drug boosts global profits by 5%

OSTEOPOROSIS treatment Fosamax, produced in Tipperary, pushed first-quarter profits at Merck & Co ahead by 5%.

Merck’s Irish subsidiary Merck Sharp & Dohme (Ireland) Ltd is based on 188 acres at Ballydine, Co. Tipperary and employs more than 450 people, producing bulk active ingredients for key Merck drugs like Midamor/Moduretic, Carace, Innovace, Zocor, Fosamax, Singulair, Aggrastat and Maxalt.

Net income at the world's third biggest pharmaceutical company increased to $1.7 billion, or 76 cents a share, from $1.6bn, 71 cents a share, in the same quarter of 2002. Sales rose 10% to $13.4bn from $12.2 bn.

Revenue from Fosamax jumped 58% to $812 million, Merck said, helping the drugmaker overcome slowing sales for the painkiller Vioxx and royalties lost to generic competition for the ulcer treatment Prilosec. Its total pharmaceutical sales rose 18%, including a 5% benefit from the weaker dollar.

“Merck got a solid quarter from its pharmaceuticals business and they got some help from sales outside the US and foreign exchange,’ said Banc of America Securities analyst Scott Kay, who has a “buy’ rating on Merck.

The US dollar fell in value compared with European currencies during the quarter, resulting in more dollars for each unit of foreign currency Merck converted.