Merck Expects June Cyberattack To Affect Company's 2017 Financial Performance

By Emma Court Markets MarketWatch Pulse

Merck & Co. Inc. said Friday that a network cyberattack in late June caused it to issue conservative 2017 guidance. The June 27 cyberattack disrupted the company's global operations, including manufacturing, research and sales, and Merck said it has been working to restore operations. Merck said it "does not yet know the magnitude of the impact of the disruption," but that guidance would have been higher if not for the cyberattack's impact. Merck said it can continue to supply its top products, including cancer drug Keytruda and diabetes drug Januvia, but there will be temporary delays in some other products in certain markets. Merck, which reported second-quarter profit and revenue beats on Friday, also affirmed its 2017 adjusted EPS outlook of $3.76 to $3.88, with Chief Financial Officer Robert Davis saying that "the strength of the business has allowed us to absorb the potential impact from the cyber attack," according to the FactSet earnings call transcript. Merck was one of several global companies hit by massive cyberattacks in late June. Merck shares lifted 0.4% in premarket trade Friday. Shares surged 2.2% over the last three months, compared with a 3.8% rise in the S&P 500 .

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