Merck KGaA's Q2 revenue boosted by Bavencio, Mavenclad sales

Headline results for the second quarter:

Revenue

3.7 billion euros ($4.3 billion, versus forecasts of 3.6 billion euros)

+0.5%

Net income

247 million euros ($286 million, versus forecasts of 567 million euros)

Versus 426 million euros ($494 million)

Note: All changes are versus the prior-year period unless otherwise stated

What the company said:

"In the second quarter, our company generated solid organic sales growth, which was mainly attributable to our Life Science and Healthcare business sectors," commented CEO Stefan Oschmann, adding "this also reflects the positive contributions of our new medicines Bavencio and Mavenclad."

Oschmann stated that "overall, we confirm our forecast for organic performance in 2018, a year of transition with many challenges, as already stated at the beginning of the year."

Other results:

  • Healthcare: 1.6 billion euros ($1.9 billion), comparable to the year-earlier quarter, driven by the performance of the fertility franchise
  • Bavencio: 17 million euros ($20 million), up from 4 million euros ($5 million)
  • Mavenclad: 20 million euros ($23 million)
  • Rebif: 383 million euros ($444 million), down from 425 million euros ($493 million)
  • Erbitux: 203 million euros ($235 million), down from 213 million euros ($246 million)
  • Gonal-f: 184 million euros ($213 million), down from 193 million euros ($223 million)
  • Life Sciences: 1.5 billion euros ($1.7 billion), comparable to the year-ago quarter, driven by all three business units

Looking ahead:

Merck said it expects that for the full year, "exchange rate effects will have a moderately negative impact on net sales" versus the previous year. However, at anticipated declines of 3 percent to 5 percent, the company noted that the impact will be slightly lower than the decreases of 4 percent to 6 percent it had previously forecast.

Excluding the consumer healthcare unit, which Merck recently agreed to divest, the company expects full-year revenue of between 14.1 billion euros ($16.3 billion) and 14.6 billion euros ($16.9 billion). Merck had previously forecast full-year revenue of 15 billion euros ($17.4 billion) to 15.5 billion euros ($18 billion), but estimated that the sale of its consumer healthcare unit would depress sales by 900 million euros ($1 billion) to 1 billion euros ($1.2 billion).

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