Merck Profits Expected to Take a Hit After June Cyber Attack Halted Production
Merck & Co Inc (MRK) - Get Merck & Co., Inc. Report said the NonPetya global cyber attack in June halted its production and consequently wounded its profits for the rest of the year, Reuters reported.
The drug and vaccine maker previously announced it was a victim of the international hacking scheme, but hadn't disclosed the effect on manufacturing until it released second quarter earnings Friday. Merck is still working to restore manufacturing processes and doesn't know the full impact of the production issues yet.
Merck's profit still improved, rising to $1.95 billion in the second quarter, up from $1.21 billion during the same period last year.
Merck told investors it is confident that its life-saving bestsellers Keytruda, Januvia and Zepatier will continue in normal supplies. It's unsure about some other unnamed products.
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Other companies affected by the NonPetya attack include FedEx Corp (FDX) - Get FedEx Corporation Report , AP Moller-Maersk (AMKBF) , Mondelez Int'l Inc (MDLZ) - Get Mondelez International, Inc. Class A Report and Reckitt Benckiser (RBGLY) .
Merck stock traded slightly up in early afternoon.
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