Monday, March 7, 2011

Merck (MRK) Battling Shortages for Women's Health Products

Merck & Co. (NYSE:MRK) is fighting to meet demand for some women's health products as a results of integrating with Schering-Plough after acquiring the company.

While not identifying specific products, the assumption is they include the NuvaRing contraceptive, which had $559 million in 2010 sales, and Follistim AQ infertility treatment, which generated $528 million in sales.

Schering held both products, the reason for believing they're part of the shortage problems.

Merck said in its filing with the Securities and Exchange Commission it "is currently experiencing difficulty manufacturing certain women's health products. The company is working to resolve these issues."

Spokesman Steven Campanini said the problems came about "due to integrating the supply chains of legacy Merck and Schering Plough over the past year as we put in place consistent manufacturing and quality standards at our widely expanded network. We've been managing through temporary supply shortages of some of our women's health products since the end of last year."

Merck closed Friday at $33.06, down $0.04, or 0.12 percent.

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