Merck Details Cyberattack Impacts

By Austen Hufford Features Dow Jones Newswires

Merck & Co. said a cyberattack over the summer hurt sales by more than $135 million in the quarter, highlighting the very-real impacts virtual attacks can have on company results.

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Merck has said that the June attack disrupted its world-wide operations, including manufacturing, research and sales.

The cyberattack on major companies around the globe in late June, dubbed Petya by computer-security experts, locked digital files and demanded payment for them to be returned at more than 100 companies and institutions.

On Friday Merck said the attack cut revenue by $135 million through lost sales.

Sales were also cut by an additional $240 million as there was borrowing from the U.S. Centers for Disease Control and Prevention vaccine stockpile of its HPV drug Gardasil, driven by both the attack and higher demand than expected.

Sales in all fell 2% to $10.33 billion. Still, the company saw big results from its keytruda cancer drug, which got an important FDA approval in May. Sales of the drug increased to $1.05 billion from $356 million.

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The company posted a loss of $56 million, or 2 cents a share, compared to a profit of $2.18 billion, or 78 cents a share, in the same quarter last year. On an adjusted basis, earnings per share rose to $1.11 from $1.07.

Analysts polled by Thomson Reuters had expected revenue of $10.54 billion and adjusted earnings per share of $1.03.

Shares fell 1.6% in premarket trading.

Write to Austen Hufford at Austen.Hufford@wsj.com

(END) Dow Jones Newswires

October 27, 2017 08:28 ET (12:28 GMT)