impact of mercks earnings result

Just looked at Mercks 2nd quarter numbers. Looks like they beat on top and bottom lines, good for them.

For us, Gardasil sales were down 18% from 2Q 08. Figures came in at $268m USD. If we look sequentially thats up from $262m USD in the first quarter.

Gardasil sales have been dropping since release (obviously) as once someone takes the shots they don't need it again. At least the trend has now started to stablise somewhat instead of the big falls we've seen last year.

Plus these results obviously don't include the potential impact of FDA approval for Gardasil's extension to males (if it comes through). Query on this point, I was told to expect these results in June, anyone know anything?

Note of caution, the actually bottom line EPS impact of Gardasil on CSL isn't that big, I think its like 20% FY09 EBIT contribution - think plasma is still the biggy.

But flat, if not mildy positive news on top of the better Baxter results. I'll listen to the Merck call in about 30 mins to see if there is any commentary on Gardasil sales outlooks there.

Fundamentally looks like a some good news to support the stock. Trading on only 14x PE with the EPSg and defensive profile + low gearing of the company seems to be low. But certainly thats helped by the unwinding of the defensive trade into risk.

Wish I'd bought more before i posted this though =(