Merck flags decline in operating profit of up to 10 percent in 2023
Germany: Germany's Merck KGaA on Thursday warned that adjusted operating earnings could decline by as much as 10% this year as the outlook for its specialty chemicals business darkened, offsetting an upswing in drug prescriptions.
The company said it was expecting between 6.1 billion euros ($6.71 billion) and 6.7 billion euros in 2023 earnings before interest, taxes, depreciation and amortisation (EBITDA), adjusted for one-offs. That is down from 6.8 billion last year.
It had previously predicted a "moderate decline to an about stable development", before any currency swings.
Demand for Merck's semiconductor materials "is expected to recover in the second half of 2023, but at a later point and from a lower base than previously assumed", it said.
Merck also said that first-quarter adjusted EBITDA declined 2.6% to 1.6 billion euros, slightly above the average estimate of 1.54 billion euros in an analyst poll on the company's website.
It highlighted as a particularly good performance the currency-adjusted sales growth of 30.6% of cancer immunotherapy Bavencio and 23% sales growth of multiple sclerosis drug Mavenclad.
CEO Belen Garijo said higher prescriptions of its new drugs were tempering the overall decline during 2023, which he described as a "transition year".
"This proves the resilience of our diversified, multi-industry portfolio," she said.
Read also: Merck beats first-quarter expectations on Keytruda, Gardasil strength
Disclaimer: This website is primarily for healthcare professionals. The content here does not replace medical advice and should not be used as medical, diagnostic, endorsement, treatment, or prescription advice. Medical science evolves rapidly, and we strive to keep our information current. If you find any discrepancies, please contact us at corrections@medicaldialogues.in. Read our Correction Policy here. Nothing here should be used as a substitute for medical advice, diagnosis, or treatment. We do not endorse any healthcare advice that contradicts a physician's guidance. Use of this site is subject to our Terms of Use, Privacy Policy, and Advertisement Policy. For more details, read our Full Disclaimer here.
NOTE: Join us in combating medical misinformation. If you encounter a questionable health, medical, or medical education claim, email us at factcheck@medicaldialogues.in for evaluation.