Merck continues on stable course
The Merck Group continued on a stable course in the 2nd quarter with its operating result up 35% to Euro 191m, spurred by payments from Bristol-Myers Squibb on sales of Glucophage products and from Schwarz Pharma on sales of generic omeprazole.
The Merck Group continued on a stable course in the 2nd quarter with its operating result up 35% to Euro 191m, spurred by payments from Bristol-Myers Squibb on sales of Glucophage products and from Schwarz Pharma on sales of generic omeprazole.
Sales declined 3.5% to Euro 1.8bn, hindered again by an 11.2% negative currency effect. The organic sales growth rate was 8.1%.
R&d costs rose 15% to Euro 159m, of which 86% or Euro 137m was allocated to pharmaceuticals as products such as the monoclonal-antibody cancer drugs Erbitux and EMD 72000 reach later, more expensive development stages. The company expects full-year r&d costs will increase slightly compared to the previous year.
Pharmaceuticals second-quarter sales rose 8.7% to Euro 843m and the operating result more than doubled compared with a year ago to Euro 99m. An organic growth rate of 17% was reduced by the effects of a strong euro. Generics continued to show a good performance and ethicals recovered on renewed US sales of Glucophage products, rising by 11% to Euro 463m in the second quarter.
Generics sales rose 8.8% to Euro 302m; the organic sales growth exceeded 15% but was reduced by a 6.7% negative currency effect. These gains were led by a 37% jump in sales in Continental Europe, where government initiatives in several countries are encouraging the substitution of lower-cost generic drugs. Payments from Schwarz Pharma for omeprazole (AstraZeneca's Losec and Prilosec) sales in the US again made a significant impact on the operating result of the pharmaceuticals business sector.
The highlight of Merck's second quarter came in late June, when the company filed applications seek-ing approval of its cancer drug Erbitux with both EMEA and Swissmedic. If Swiss authorities approve Erbitux within the expected time frame, the product could be launched in Switzerland before the end of the year. The EU launch would follow after approval in 2004.
Also for the end of this year, Merck is currently preparing the UK market launch of Niaspan, a treatment for multiple cholesterol disorders. Rollout in the rest of the EU is expected in 2004 and 2005.