Merck KGaA, a Germany based Global pharmaceutical and chemical company, has posted impressive growth in profitability during the second quarter ended June 2008 and its net profit went up sharply by 135 per cent to Euro 211 million from Euro 90 million in the corresponding period of last year. Its total revenues improved by 6.1 per cent Euro 1,903 million from Euro 1,795 million. Its earning per share improved to Euro 0.95 from Euro 0.39 in the last period.
Dr Karl-Ludwig Kley, chairman, said, "The Merck Group produced solid growth in the second quarter with all four divisions contributing to the increase in revenues despite strong headwinds from negative currency effects. Therefore, Merck continues to expect that we will meet the guidance for 2008 that we announced earlier this year."
Currency effects continued to have a considerable negative impact on total revenues. Group total revenues grew organically by 12 per cent but this was reduced by 6.1 per cent points due to translation of local currencies into the strong euro. For the first half of 2008, revenues grew organically by 13 per cent but were reduced by 5.8 per cent points due to negative currency effect to Euro 3,761 million.
Despite the Euro 10.3 billion purchase of Serono last year, Merck's financial result has already returned a low level, just Euro minus 35 million in the second quarter of 2008 compared to Euro minus 80 million in the year-ago quarter.
Merck Serono division's total revenues rose by 8.3 per cent Euro 1,237 million in the second quarter from Euro 1,142 million in the year-ago quarter. For the first half of 2008, the division's revenues increased by 9 per cent to Euro 2,419 million. Global sales of Rebif for the treatment of relapsing forms of multiple sclerosis rose by 2.8 per cent to Euro 320 million in the second quarter.
Sales of the targeted cancer treatment Erbitux continued to grow at a double-digit rate, increasing 24 per cent to Euro 145 million with strong growth in France, Spain and China. Merck's main classic pharmaceuticals generated double-digit sales growth rates due to excellent life cycle management.