Merck & Co. (MRK, Financial) had a challenging quarter as total sales declined 2% due to a temporary production shutdown from a cyber-attack. Merck’s Pharmaceutical segment–making up 89% of sales–fell 3% as they lost market exclusivity for two of their top cholesterol treatments and are facing increasing pricing pressure on their top-selling drug. On a positive note, the outlook for cancer-fighting immunotherapy Keytruda is very encouraging.
From Jeff Auxier (Trades, Portfolio)'s fourth quarter 2018 shareholder letter.
