Pharmaceuticals boost 2009 results at Merck
German pharmaceuticals and chemicals company Merck KGaA saw its group total revenues in 2009 rise by 2.1% to Euro 7.7bn.
German pharmaceuticals and chemicals company Merck KGaA saw its group total revenues in 2009 rise by 2.1% to Euro 7.7bn.
The company said a 6.5% increase in revenues from its pharmaceuticals business more than offset a 9% decline in chemicals.
Research and development costs rose 8.9% to €1.3bn, mainly due to the Merck Serono division because, for the first time in its history, Merck is conducting trials on 10 projects in the final phase of clinical development prior to potential market launch.
Full-year earnings before interest and tax (EBIT) fell by 15% to €621m. Profit before tax fell to €486m in 2009 from €575m the year before.
Dr Karl-Ludwig Kley, chairman of Merck KGaA, said the company was "satisfied" with the results compared with the overall circumstances of the last year.
"For 2010, it will be crucial whether the economic recovery trend remains stable," he said.
Merck says group total revenues should increase by 3-7% in 2010, and operating profit could grow by 20-30%.
Pharmaceutical division Merck Serono's total revenues increased 6.6% to €5.3bn in 2009, despite the market withdrawal of the psoriasis drug Raptiva, which cost the company €40m. This growth was mainly due to the good performance of biopharmaceuticals such as Rebif and Erbitux, as well as to classic products such as the Glucophage family. Merck Serono generated 60% of its revenues, or €2.98bn, with its five top-selling biopharmaceuticals.
Rebif, a treatment for multiple sclerosis, was once again the top-selling product. Global sales rose 15% to €1.54bn in 2009. Sales of the targeted cancer treatment Erbitux climbed 23% to €697m. Sales of Gonal-f, a recombinant hormone used in the treatment of infertility, increased by 5.8% to €486m, boosted by strong growth in Asia, Africa, Australasia, North America and Latin America.
Merck Serono's r&d costs increased during 2009 by 10% to €1.2bn, accounting for 22% of the division's total revenues.
The Performance and Life Science Chemicals division generated total revenues of €1.2bn during 2009, a decline of 3.8% compared with 2008, due to reduced demand for effect pigments.