Merck KGaA Q2 below expectations

Source: Healthcare Digital

Date :23/07/2008 10:03:00

Merck KGaA has reported weaker net profit due to the negative currency impact.

The German maker of the Erbitux cancer drug said net profits rose to €207.4 million, or 95 cents a share, from €85.5 million, or 39 cents last year.

However the rise was below the market forecast of €209.3 million.

Sales increased 6.1 percent to €1.9 billion, Darmstadt, Germany-based Merck KGaA said.

The conversion of local currencies into euros cut revenue by 6.1 percentage points, Merck said.

Erbitux sales helped boost drug unit sales 8.3 percent.

Profit in the year-earlier period was hurt by a €183 million charge related the acquisition of Switzerland's Serono SA.

Fiscal guidance

Merck KGaA said it remains on track to meet guidance for fiscal 2008 and expects total revenues to increase between five percent and nine percent.

The operating margin, excluding amortization and Merck Serono integration costs, is expected to be 23 percent to 27 percent.