Merck posts 15% rise in Q4 profits driven by Sigma-Aldrich acquisition
pharmafile | March 8, 2016 | News story | Manufacturing and Production, Sales and Marketing |
German drug maker Merck on Tuesday said it sees the acquisition of Sigma-Aldrich to aid sales in 2016 and reported a 15% rise in fourth-quarter profits boosted primarily by the strong acquisition-related sales rise in Life Science.
The company reported fourth-quarter net sales of €3.46 billion against €2.99 billion a year ago. Earnings per share halved to €0.29 versus €0.64 a year earlier. Earnings per share before one-time items stood at €1.13 against €1.14 in the year ago quarter.
Karl-Ludwig Kley, chairman of Merck, said, “2015 was not only an eventful, but above all a very successful year for Merck. We again achieved profitable growth. By acquiring Sigma-Aldrich, we successfully completed the portfolio realignment of recent years. In immuno-oncology, we initiated six pivotal clinical trials. Research advances and future-oriented investments form the foundation for future success. And our new bold and vibrant branding shows what makes Merck unique.”
Merck said Sigma-Aldrich acquisition will aid sales in the low double-digit percentage range for 2016. For 2016, owing to the expected operating performance and the acquisition of Sigma-Aldrich, the company sees a low double-digit percentage increase in EBITDA before special items against 2015.
Sigma-Aldrich acquisition
In September 2015, Merck acquired US-based Sigma-Aldrich in a deal worth $17 billion (€13.1 billion) to expand its lab supplies business.
Mr. Kley said, “With the acquisition of Sigma-Aldrich, the biggest takeover in our corporate history, Merck has become one of the leading players in the global life science industry. We can now offer our customers a broader product portfolio than before. Additionally, we now have the leading e-commerce platform in the sector.”
The company will propose an annual dividend of €1.05 a share for the 2015 financial year.
Product sales
Sales of multiple sclerosis drug Rebif (interferon beta-1a) fell 10.7% in 2015 owing to continued competitive pressure from oral formulations, the company said in a statement. Sales were impacted by currency tailwinds and stood at €1.8 billion for the full-year 2015. Total sales of the cancer drug Erbitux (cetuximab) in 2015 were stable against €904 million a year earlier. Sales for Gonal-f, the recombinant hormone used in the treatment of infertility, grew 3.7% in 2015 to €685 million versus €628 million a year ago.
Shares in the company were down over 1.6% to €78.49 in morning trade on the Frankfurt Stock Exchange.
Anjali Shukla
