Please login to the form below

Not currently logged in
Email:
Password:

Merck KGaA raises forecasts as Rebif buoys Q2 sales

Pharma company sees double-digit rise in second-quarter revenues

Merck KGaA HQ Darmstadt

 

A strong performance from multiple sclerosis drug Rebif helped Merck KGaA to a 12 per cent hike in second-quarter revenues to €2.85bn, although earnings were impacted by one-off charges.

Rebif (interferon beta-1a) rose almost 10 per cent to €492m, thanks to US price increases and the weak euro and despite increasing competition in the MS market. 

Cancer drug Erbitux (cetuximab) also added 7 per cent to reach €226m while fertility drug Gonal-f (follitropin alfa) rose 17 per cent to €160m and diabetes treatment Glucophage (metformin) was up 19 per cent to €111m. 

The strong performance by these established brands helped the group's Merck Serono unit to a healthy 11 per cent rise in revenues to €1.55bn.

Overall, the group reported earnings before interest, taxes, depreciation and amortisation (EBITDA) up almost 14 per cent to €747m, ahead of analysts' expectations. 

The quarter also included some €394m in impairment charges related to various cost-cutting initiatives which pegged back operating profit to €23m. 

The group is in the midst of a major streamlining operation that is reducing its headcount and shedding facilities, including Merck Serono's Swiss headquarters in Geneva. Earlier this year Merck said it was targeting savings of €300m by 2014 in the face of "unprecedented market shifts and increasing competition in key product areas".

Consumer health sales fell 3 per cent to €121m, with softer demand in Europe offset by gains in emerging markets, although the unit is becoming more profitable as a result of Merck's cost-cutting drive. Meanwhile, lab and manufacturing equipment unit Merck Millipore had a good quarter, with sales up 11 per cent to €649m.

"Merck reported solid second-quarter results due to healthy demand in all our businesses, tight cost management, and favourable currency exchange rates," said group chairman Karl-Ludwig Kley, who noted that underlying organic growth was nearer 5 per cent.

Merck now expects full-year revenues to come in at €10.7bn, up from its earlier €10.5bn forecast, with EBITDA of €2.85bn-€2.95bn.

14th August 2012

Share

Related Hub content

    Your search did not contain any words. Please try again.

Featured jobs

Subscribe to our email news alerts

PMHub

Add my company
Darwin Health Care

Strategic, tactical and creative Darwin Health Care is a European-based, international medical education company. We're part of the Grey Healthcare...

Latest intelligence

More of the same: The importance of strategic communications planning for biosimilar entry
GCI Health's Hannah Morris considers the importance of strategic communications planning for biosimilar entry, a market anticipated to deliver between €8-26bn in savings across the European Union by 2020....
Online Physician Communities
How can pharma realise the power of digital?
Firstly, by making it owned and driven by the most senior leadership team in the business...
Remapping the market: Does Pharma's global model need a shake up?
For patients, carers and professionals, wherever they are in the world, digital technology is inherent in their everyday lives. Digital is, so to speak, a global language. The success of...