Merck Serono sees strong growth in Q2 2012

Merck Serono has experienced another strong quarter of business growth during Q2 2012, according to parent company Merck KGaA.

Data from the group’s latest financial report shows that Merck Serono generated sales of 1.55 billion euros (1.21 billion pounds), up by 11 percent year over year, thanks to growing demand for products such as Rebif and Erbitux.

Organic sales growth was measured at 6.6 percent, while a 4.2 percent benefit was seen thanks to favourable foreign exchange rate movements, such as the strengthening US dollar.

Karl-Ludwig Kley, Chairman of the Executive Board of Merck

This came during a period when the firm’s consumer health division also saw a year-on-year improvement, helping the Merck KGaA group as a whole to achieve total revenues of 2.85 billion euros.

“Merck reported solid second-quarter results due to healthy demand in all our businesses, tight cost management, and favorable currency exchange rates,” said Karl-Ludwig Kley, Chairman of the Executive Board of Merck. “The financials show that we are making good progress in strengthening Merck for the future. Merck Serono performed particularly well, sustaining strong growth trends for a fifth consecutive quarter in Emerging Markets and in its Fertility and Endocrinology businesses.”

Last month, Merck Serono announced the launch of Prexton Therapeutics, a new spin-off company focused on the development of Parkinson’s disease therapies.

Q2 2012: Merck Transformation Starts to Yield First Results

• Merck generates solid sales growth driven by all divisions
• Especially Merck Serono benefiting from strong underlying trends (Emerging Markets and Fertility)
• EBITDA pre growth of 14% due to operating leverage, implementation of cost efficiencies and lower discretionary spending
• Strong free cash flow generation results from higher profitability and improved working capital management
• Company incurs € 376 million in charges relating to its “Fit for 2018” efficiency program

Merck Serono’s second-quarter sales increased 11% to € 1,546 million compared to € 1,395 million in the year-ago quarter. This good performance reflected organic sales growth of 6.6% and a 4.2% benefit from foreign exchange rate movements driven by a strengthening US dollar. Organic double-digit sales growth in the regions of North America (21%), Emerging Markets (10%), and Rest of World (15%) more than offset softer trading conditions in Europe, where sales declined for the fourth consecutive quarter (-2.4%), impacted by continued pricing pressures. The division’s Fertility and Endocrinology businesses also continued their robust performances, with sales growing at a double-digit rate, driven by higher volumes and pricing gains.

Global sales of Merck’s largest single product, Rebif® for the treatment of relapsing forms of multiple sclerosis (MS), rose 9.6% organically to € 492 million in the second quarter. Sales of the targeted cancer treatment Erbitux® increased 7.1% on an organic basis to € 226 million in the second quarter of 2012.

The division’s EBITDA pre rose at a faster rate than sales, improving by 20% to € 439 million, or 28.4% of sales, in the second quarter of 2012 compared to € 366 million, or 26.3% of sales, in the year-ago quarter.

Source:

http://news.merck.de/N/0/D91B456FCC96A3E2C1257A59003FE270/$File/Q2-12-E.pdf

http://www.zenopa.com/news/801429142/Merck_Serono_sees_strong_growth_in_Q2_2012