2Q 2022: Merck delivers robust growth despite headwinds: Healthcare

Merck, a leading science and technology company, continued its growth trajectory in the 2Q 2022 despite a challenging environment. In the 2Q 2022, the Healthcare business sector reported organic sales growth of 1.4%. The strong previous year quarter was favourably impacted by around EUR 50 M from the temporary contract manufacturing for Eli Lilly and Company, US, (Eli Lilly). Including positive foreign exchange effects of 6.2%, net sales amounted to EUR 1924 M, an increase of 7.6%. The key growth driver was business with new products such as Bavencio and Mavenclad. In the 2Q 2022, the Oncology franchise delivered organic growth of 8.1%, which was fuelled especially by the strong 60.7% increase in sales of the immuno-oncology drug Bavencio. This increase was primarily attributable to the further gain of market shares in connection with first-line maintenance therapy in patients with locally advanced or metastatic urothelial carcinoma (UC), particularly in Europe and Japan. The oncology drug Erbitux saw an organic sales decline of -9.0% owing to the temporary contract manufacturing agreement with Eli Lilly in the 2Q 2021. Sales of the Neurology & Immunology franchise declined organically by -1.2%. Mavenclad, for the treatment of relapsing multiple sclerosis, generated organic sales growth of 26.6%. The multiple sclerosis drug Rebif saw a decrease of -18.9%. The Fertility franchise recorded a moderate organic sales decline of -2.7% in the 2Q 2022, while the Cardiovascular, Metabolism and Endocrinology franchise grew moderately by 2.7%. In the 2Q 2022, EBITDA pre of the Healthcare business sector increased by 3.9% compared with the 2Q 2021 to EUR 604 M. An organic earnings decline of -9.5% was countered by positive foreign exchange effects of 13.4%. The strong result of the 2Q 2021 was supported by the temporary supply agreement with Eli Lilly. The EBITDA pre margin was 31.4%. Original source: Merck KGaA, website: https://www.merckgroup.com/en, Copyright Merck KGaA 2022.
company results; anticancer drugs; Bavencio; beta-interferon; cetuximab; Mavenclad; multiple sclerosis drugs; [...]