Merck KGaA’s rising revenues fail to lift bottom line
pharmafile | October 27, 2009 | News story | Sales and Marketing | Merck Serono
Revenues up, earnings down: that was the bottom line to Merck KGaA’s financial performance in the three months to the end of September.
The group’s revenue rise of 2.7% to 1.94 billion euros was tempered as earnings before interest and tax dropped 28% to 222 million euros.
But when it came to individual pharma products, multiple schlerosis drug Rebif and cancer treatment Erbitux were the stars, with big sales increases.
And although most other numbers headed downwards – return on sales down 5% to 11.4%, pre-tax profit down 31% to 190 million euros – Darmstadt-based Merck believes signs are hopeful.
“The third-quarter figures are showing improvement compared to the first half of 2009,” said company chairman Karl-Ludwig Kley.
“We now can say with confidence that Merck will deliver what it promised earlier in the year.”
Merck, whose products include chemicals and liquid crystals as well as pharma, reckons total revenues for 2009 will grow by 2%.
Overall R&D spend was up 17% to 333 million euros over the three months – Merck Serono’s share of this was 293 million euros – primarily as a result of funding late-stage clinical trials.
Rebif’s performance (sales up 13% to 381 million euros) was strong in the US, with higher prices and increased volume the keys.
The new RebiSmart injection device, which should make self-medication easier for patients using Rebif, is now available in Europe.
Erbitux (which saw a 33% rise to 177 million euros) is now approved in 77 countries to treat colorectal cancer and in 72 countries to treat head and neck cancer.
Meanwhile third-quarter sales of Gonal-f, a recombinant hormone used in IVF treatment, were up 1.6% to 111 million euros.
These three brands accounted for half the division’s total sales during the third quarter, as Merck Serono’s revenues increased 5.8% to 1.3 billion euros.
Of its other pharma products, sales of heart treatment bisoprolol (including Concor and Lodoz) were down 7.3% to 103 million euros.
But the Glucophage (metformin) oral anti-diabetes range was up 4% to 77 million euros, boosted by Latin America sales.
Merck’s consumer health care division saw revenues rise 11% to 123 million euros in the third quarter.
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