Merck KGaA recorded significant growth of 49 per cent in net profit during the year ended 2006 on account of lower interest expenses and cost containment. The net profit jumped to EUR 1,001 million - a new record and the first time in Merck's history that this profit line exceeded EUR 1 billion - from EUR 673 million. Its sales improved by 8.5 per cent to EUR 6,259 million from EUR 5,768 million in the previous year.

Dr Michael Roemer, chairman, said, "The year 2006 was an outstanding time for Merck. Again in 2006, Merck posted record figures on all results levels. The strong performance of both business sectors, especially chemicals, confirms. Merck's strategy of operating pharmaceuticals and chemicals businesses as an integrated organisation."

The pharmaceuticals division's sales rose by 8.6 per cent to EUR 4,119 million - about two-thirds of total Group sales. The operating profit from this division was up by 15 per cent EUR 524 million. Sales by the Ethicals division rose by 11 per cent to EUR 1,902 million in 2006 on account of higher sales of Erbitux, which jumped 55 per cent to EUR337 million. This targeted therapy is now approved or the treatment of colorectal cancer in 58 countries in Merck's marketing territory.

Sales by the generics division rose by 6.9 per cent to EUR 1,819 million during 2006 The generics annual operating result rose by 29 per cent to EUR 307 million with strong contributions from Canada and he US subsidiary Dey, Inc.