Merck Reports Jump in Earnings in Q3 2015

• All business sectors contribute to 6.8% rise in Group net sales
• EBITDA pre exceptionals climb 10.2%; net income soars by 46.3%
• Life Science drives organic sales growth of the Group
• One-time effect from the release of provisions in Healthcare
• Forecast for 2015 lifted thanks to good operational performance and Sigma-Aldrich acquisition

Darmstadt, Germany, November 12, 2015 – Merck, a leading science and technology company, reported sales growth of 6.8% in the third quarter of 2015. EBITDA pre exceptionals rose sharply by 10.2%.

“Our organic growth in all three business sectors and all regions shows that our strategy is bearing fruit. We are also well-positioned for future growth,” said Karl-Ludwig Kley, Chairman of the Merck Executive Board. “The fact that we are lifting the forecast for the current full year is due to the good operational performance of our businesses as well as to the imminent acquisition of Sigma-Aldrich.”

Group sales rose in the third quarter of 2015 by 6.8% to € 3.1 billion (Q3 2014: € 2.9 billion). Organic sales growth amounted to 3.3% while positive currency effects increased sales by 3.5%. From a geographic perspective, the Asia-Pacific region was the growth engine of the Group with strong organic growth and significantly positive currency effects.

The 10.2% jump in EBITDA pre exceptionals, Merck’s key performance indicator, to € 944 million (Q3 2014: € 857 million), was primarily driven by good operating performance in the third quarter. Lower research and development costs were due among other things to the release of provisions that had been set up in the second half of 2014 for the discontinuation of clinical development programs. This contrasted with higher marketing and selling expenses in the third quarter of 2015 that were incurred in connection with the investments in company growth initiatives. Group EBIT rose sharply by 31.4% to € 564 million (Q3 2014: € 429 million). Net income soared by 46.3% to € 364 million (Q3 2014: € 249 million). Earnings per share pre exceptionals rose in the third quarter of 2015 by 14.8% to € 1.32 (Q3 2014: € 1.15).

As of September 30, 2015, Merck had built up net financial position of € 1.3 billion. Net financial debt will soon increase considerably as a result of the acquisition of Sigma-Aldrich. Merck had 40,339 employees worldwide on September 30, 2015.

All business sectors report growth in the first nine months
In the first nine months of 2015, Group net sales rose 12.2% to € 9.4 billion (Jan.-Sept. 2014: € 8.4 billion). All three business sectors contributed to this increase. Foreign exchange movements accounted for a 7.5% increase in sales, which grew organically by 2.3% in the nine-month period. Portfolio effects, among other things due to the acquisition of AZ Electronic Materials, were responsible for a 2.4% increase in sales in the first nine months of 2015. For the period from January to September 2015, the Merck Group reported EBITDA pre exceptionals of € 2.7 billion (Jan.-Sept. 2014: € 2.5 billion), thus improving the year-earlier figure by 7.5%. Earnings per share pre exceptionals climbed 8.1% to € 3.74 in the first nine months of 2015 (Jan.-Sept. 2014: € 3.46).

Healthcare achieves organic growth in Asia-Pacific
Sales increased in the Healthcare business sector in the third quarter of 2015 by 1.4% to € 1.7 billion (Q3 2014: € 1.7 billion) amid slightly negative exchange rate effects. In the third quarter of 2015, the organic increase in sales was driven in particular by products to treat infertility (Gonal-f), diabetes (Glucophage), thyroid disorders (Euthyrox), as well as by Neurobion, a brand marketed by the Consumer Health business. From a geographic perspective, the Asia-Pacific region fueled organic growth.

Thanks to business performance in North America and positive currency effects, sales of Rebif, which is used to treat relapsing forms of multiple sclerosis, were flat at € 468 million in the third quarter of 2015 (Q3 2014: € 466 million) despite strong competitive pressure mainly from oral formulations. Sales of the oncology drug Erbitux declined to € 223 million (Q3 2014: € 232 million) due to an organic decrease and negative currency effects. Sales of the fertility drug Gonal-f increased to € 167 million in the third quarter (Q3 2014: € 147 million), supported by organic growth and favorable currency effects.

EBITDA pre exceptionals of the Healthcare business sector rose in the third quarter by 8.1% to € 537 million (Q3 2014: € 497 million).

The complete Merck News Release can be downloaded at the following link:
http://news.merck.de/N/0/88F8EB322836411EC1257EFA0066925B/$File/Q3_2015_PM_EN.pdf

 

Stefan Oschmann Appointed New Executive Board Chairman of Merck

Darmstadt, Germany, October 13, 2015 – In its meeting today, the Board of Partners of E. Merck KG appointed Stefan Oschmann (58) as new Chairman of the Executive Board and CEO of Merck KGaA. The appointment will take effect with the end of the Annual General Meeting on April 29, 2016. Stefan Oschmann will succeed Karl-Ludwig Kley (64) who will retire after then eight years as head of Merck.

Dr. Stefan Oschmann, Deputy Chairman of the Executive Board and Deputy CEO, Merck

Stefan Oschman has been a member of the Executive Board of Merck since 2011. He was initially in charge of the pharma business before being appointed as Deputy Chairman of the Executive Board and Deputy CEO at the beginning of 2015, responsible for strategy and innovation.

“Under the leadership of Karl-Ludwig Kley, Merck years has gone through the biggest transformation in its almost 350-year history. This entailed building and expanding no fewer than three strong global businesses that are able to provide ground-breaking solutions for patients and customers and secure growth and affluence for our 40.000 employees,” said Johannes Baillou, Chairman of the Board of Partners of E. Merck KG. “We want to express our deep gratitude and respect for his achievements. We’re equally happy to have found a successor in Stefan Oschmann early on, whose strategic foresight and strong leadership have turned Merck into a respected player in the pharma industry again. We’re convinced that he will take the right steps to position Merck in a way that will allow the company to continue to actively shape an environment that has been experiencing fundamental scientific and digital changes.”

From what used to be a company with a diverse portfolio in pharma and chemicals, Merck since 2006 has evolved into a specialized high-tech company in the areas of healthcare, life science and performance materials. Today the company holds leading positions in fertility treatments, process solutions for the biotech industry or liquid crystal displays. Following mergers and acquisitions totaling around 38 billion € as well as organic growth sales will have doubled to more than 12 billion € this year compared with the 2005 level. Two change programs have resulted in a leaner organization capable of driving innovation in an efficient manner.

Prior to joining Merck, Stefan Oschmann worked for more than 20 years for U.S. pharma company MSD Merck Sharp & Dohme. He is president of the IFPMA (International Federation of Pharmaceutical Manufacturers & Associations) and Vice President of EFPIA (European Federation of Pharmaceutical Industries and Associations).

Karl-Ludwig Kley had already been a member of the Supervisory Board of Merck KGaA and the Board of Partners of E. Merck KG since 2004. In 2006 he became Deputy Chairman of the Executive Board of Merck before taking over as Chairman in 2007. Prior to that, he was Chief Financial Officer at Deutsche Lufthansa for eight years and joined the airline’s supervisory board in 2013. He is Deputy Chairman of the supervisory board of BMW and member of the supervisory board of Bertelsmann. In addition, he is vice president of the German Chemicals Association (VCI) and member of the steering committee of the Federation of German Industries (BDI).

About E. Merck KG
E. Merck KG combines the financial interests of the Merck family and, holding an interest of around 70%, is general partner of Merck KGaA. The Board of Partners of E. Merck is comparable to the supervisory board of a German stock corporation (AG). It is responsible for appointment the members of the Executive Board of Merck KGaA, and for monitoring them.

 

Merck Creates Greater Scope for Developing Ideas – Innovation Center opened

• Investments of around € 1 billion earmarked to be made in Merck headquarters until 2020
• Platform created for innovators from around the world and the Rhine-Main region
• Opening in the presence of Prime Minister of Hesse Volker Bouffier and Merck CEO Karl-Ludwig Kley
• Cornerstone laid for the future Innovation Center, which will form the heart of global headquarters as of 2018

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Darmstadt, Germany, October 1, 2015 – Merck, a leading company for innovative and top-quality high-tech products in the healthcare, life science and performance materials sectors, today opened its Innovation Center in Darmstadt, thus establishing a new platform for innovations from around the world and from the Rhine-Main region.

The complete Merck News Release can be downloaded at the following link:
http://news.merck.de/N/0/58C46F5C7D309C74C1257ED000565983/$File/OpeningEvent_EN.pdf

 

Merck Reports Sales and Earnings Growth in Q2 2015

• All three business sectors contribute to reported sales growth of 14.4%
• Life Science drives organic sales growth
• Merck intensifies R&D activities in Healthcare
• EBITDA pre exceptionals up 6.3%
• Merck builds up net cash position
• Forecast for full year 2015 confirmed

Darmstadt, Germany, August 6, 2015 – Merck, a leading company for innovative, top-quality high-tech products in healthcare, life science and performance materials, today announced renewed strong sales growth, amounting to 14.4% in the second quarter of 2015. EBITDA pre exceptionals also rose by 6.3%. Merck thus continued on its growth course in the first half of 2015.

“All three business sectors contributed to our good double-digit sales growth. Foreign exchange movements did help us, yet our businesses grew even without these additional tailwinds,” said Karl-Ludwig Kley, Chairman of the Executive Board of Merck. “We confirm our forecast for the full year 2015.” Group net sales increased by 14.4% to € 3.2 billion in the second quarter of 2015 (Q2 2014: € 2.8 billion). Sales grew organically by 2.2%. Significantly positive currency effects of 10.2% and portfolio effects due to the integration of AZ Electronic Materials (AZ) amounting to 1.9% also contributed to growth. From a geographic perspective, the Asia-Pacific, Latin America, and Middle East and Africa regions fueled organic sales growth.

Driven by good operational performance and a favorable currency environment, EBITDA pre exceptionals, the key earnings indicator of the Merck Group, rose by 6.3% to € 899 million (Q2 2014: €  846 million). Higher research and development spending, mainly relating to the intensification of research in the Healthcare business sector, dampened EBITDA pre exceptionals. The absence of royalty and license income included in the previous year also had a negative impact on EBITDA pre exceptionals. Group EBIT increased 13.7% to € 501 million (Q2 2014: € 441 million). Net income rose in the second quarter by 13.2% to € 343 million (Q2 2014: € 303 million).

Earnings per share pre exceptionals rose in the second quarter of 2015 by 12.1% to € 1.30 (Q2 2014: € 1.16).
In the course of the second quarter of 2015, Merck built up a net cash position amounting to € 567 million on June 30. However, net financial debt is expected to soon increase significantly as a result of the planned acquisition of Sigma-Aldrich. Merck had 40,192 employees worldwide on June 30, 2015.

Merck businesses perform well in the first half
In the first half of 2015, net sales of the Merck Group increased by 15.0% to € 6.3 billion (Jan.-June 2014: € 5.4 billion). Foreign exchange movements led to a sales increase of 9.6% or € 523 million. All business sectors contributed to organic sales growth, which amounted to 1.8% in the first half of 2015. The acquisition of AZ also had a positive impact of 3.6% on sales.

In the first half of 2015, EBITDA pre exceptionals of the Merck Group totaled € 1.8 billion (Jan.-June 2014: € 1.7 billion), thus exceeding the previous year’s figure by € 100 million or 6.0%. Earnings per share pre exceptionals climbed by 4.7% to € 2.43 in the first half of 2015 (Jan.-June 2014: € 2.32).

Healthcare benefits from organic business in growth markets
The Healthcare business sector generated organic sales growth of 1.5% in the second quarter of 2015. Including positive foreign exchange effects of 7.8%, net sales rose overall by 9.2% to € 1.8 billion (Q2 2014: € 1.7 billion). The organic increase in sales was driven in particular by pharmaceuticals to treat diabetes (Glucophage), thyroid disorders (Euthyrox), and cardiovascular diseases (Concor), as well as Neurobion, a brand marketed by the Consumer Health business. From a geographic perspective, organic growth was mainly driven by the Latin America and Asia-Pacific regions.

Rebif, which is used to treat relapsing forms of multiple sclerosis, posted a sharp -12.0% organic decrease in sales in the second quarter of 2015 owing to strong competition from oral formulations. Amid currency tailwinds of 11.3%, Rebif sales were stable at € 461 million (Q2 2014: € 464 million). Despite a slight organic decline, sales of the oncology drug Erbitux rose to € 233 million (Q2 2014: € 229 million). Merck generated organic sales growth of 1.6% with the fertility medicine Gonal-f. Currency tailwinds increased sales to € 177 million (Q2 2014: € 161 million).

The second quarter saw not only higher net sales, but also higher investments, firstly in targeted marketing activities in growth markets and secondly in research and development. Consequently, EBITDA pre exceptionals of the Healthcare business sector declined by -2.8 % to € 480 million in the second quarter of 2015 (Q2 2014: € 493 million). “As announced, we have deliberately invested in research and development in order to drive important pipeline projects such as our anti-PD-L1 antibody avelumab,” said Karl-Ludwig Kley.

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Merck to Invest € 50 Million in Italian Production Site in Bari

• Investment to meet the rising demand for biopharmaceuticals

Darmstadt, Germany / Bari, Italy, May 20, 2014 – Merck today announced plans to invest € 50 million in its Italian production site in Bari in order to respond to the rising demand for biopharmaceuticals.

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

The announcement was made by Karl-Ludwig Kley, Chairman of the Executive Board of Merck, during a press conference held today at the Bari plant, in the presence of the Italian Prime Minister Matteo Renzi, and of the President of the Italian Pharma Industries Association Farmindustria, Massimo Scaccabarozzi.

Within Merck Serono’s global biotech production network, the Bari site is part of fill & finish operations alongside the facilities in Darmstadt and Aubonne (Switzerland). The drugs produced within this global network are seeing long-term growing demand, especially as regards those to treat infertility. The new production facility in Bari, southern Italy, is to be commissioned in 2017 for the sterile filling and packaging of liquid drugs into syringes, vials and ampoules (fill & finish).

“To make Merck fit for the future, we are also investing in modern, expanded production capacities in order to meet the rising demand for our drugs,” said Kley, making reference to the “Fit for 2018” transformation and growth program. During his visit to the Bari site today, he explained the reasons for the investment: “This is part of our growth plans for Merck and for the Merck Serono division in particular here in Bari, where we have excellent conditions thanks to highly skilled employees and a very good infrastructure. Patients will also benefit from this investment as we secure the supply of drugs that improve the quality of life of people around the globe.”

Merck generates more than half of the sales of its Merck Serono division with biotech products. Among others, the company is the world market leader in the treatment of infertility. Around two million babies of the five million born with the help of infertility drugs worldwide were conceived with the aid of Merck Serono products.

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About Merck
Merck is a leading company for innovative and top-quality high-tech products in the pharmaceutical and chemical sectors. With its four divisions Merck Serono, Consumer Health, Performance Materials and Merck Millipore, Merck generated total revenues of € 11.1 billion in 2013. Around 38,000 Merck employees work in 66 countries to improve the quality of life for patients, to further the success of our customers and to help meet global challenges. Merck is the world’s oldest pharmaceutical and chemical company – since 1668, the company has stood for innovation, business success and responsible entrepreneurship. Holding an approximately 70% interest, the founding family remains the majority owner of the company to this day. Merck, Darmstadt, Germany is holding the global rights to the Merck name and brand. The only exceptions are Canada and the United States, where the company is known as EMD.

 

Merck Achieves Profitable Organic Growth in the First Quarter

• All four divisions contribute to solid organic sales growth of the Group
• EBITDA pre one-time items rises slightly to € 807 million despite declining royalty and license income as well as currency headwinds
• Earnings per share before one-time items increase by 9.5% to € 2.31
• Kley: “Taking the successful acquisition of AZ Electronic Materials into account, we expect a moderate increase in sales and EBITDA pre one-time items in 2014.”

Darmstadt, Germany, May 15, 2014 – Merck, a leading company for innovative and top-quality high-tech products in the pharmaceutical and chemical sectors, achieved organic sales growth of 3.7% in the first quarter of 2014. This was, however, more than offset by negative foreign exchange effects of 5.4%. Overall, sales slipped slightly by around € 46 million in the first quarter of 2014 to € 2.6 billion (Q1 2013: € 2.7 billion). EBITDA pre one-time items rose by 0.7% to € 807 million despite the negative exchange rate effects and significantly lower royalty, license and commission income. The EBITDA margin pre one-time items increased again, reaching 30.9%, which was higher than the figures for both the full year 2013 and the year-earlier quarter.

“Merck got off to a solid start in 2014. We increased our organic sales, which means we sold more. In addition, we earned more on what we sold. Especially in view of the challenging market environment that we expect to face in 2014, our cost control and targeted growth initiatives are paying off across all our divisions,” said Karl-Ludwig Kley, Chairman of the Executive Board.

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http://www.merckgroup.com/en/media/extNewsDetail.html?newsId=D286F4F105F8C180C1257CD8005CFD7D&newsType=1

 

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