German major Merck (NYSE: MRK) released its 2022 annual report this week, showing a robust expansion in global net sales. The company reported a 12.9% year-on-year (YOY) increase to EUR 22.2 billion (USD 23.6 billion), driven by growth across all business sectors. This performance underscores Merck’s continued strength in the global market, with significant contributions from its Healthcare, Life Sciences, and Electronics units.
Business Sector Performance
The Healthcare unit was a key driver of growth, generating EUR 7.8 billion (USD 8.3 billion) after a 10.6% YOY rise, primarily fueled by the oncology, neurology, and immunology areas. The Life Sciences segment contributed EUR 10.4 billion (USD 11.0 billion), marking a 15.4% YOY growth, while the Electronics division added EUR 4.0 billion (USD 4.3 billion), up 11.3% YOY. These results highlight the diversified and resilient nature of Merck’s business model.
Key Product Highlights
Merck’s 2022 performance was bolstered by several key products. The oncology blockbuster Erbitux (cetuximab) led sales with EUR 1.0 billion (USD 1.1 billion), driven mainly by strong demand in the Asia-Pacific and Europe regions. The PD-L1 blocker Bavencio (avelumab) saw a staggering 63.8% YOY growth, reaching EUR 611 million (USD 649 million), largely due to its urothelial carcinoma (UC) indication. Anti-diabetic Glucophage (metformin hydrochloride) generated EUR 930 million (USD 988 million), and multiple sclerosis (MS) treatments Rebif (interferon beta-1a) and Mavenclad (cladribine) contributed EUR 887 million (USD 942 million) and EUR 856 million (USD 909 million) respectively.
Regional Sales Breakdown
Healthcare sales were led by Europe, which reported EUR 2.4 billion (USD 2.6 billion), up 7.3% YOY. This was followed by Asia-Pacific at EUR 2.3 billion (USD 2.4 billion), North America at EUR 1.8 billion (USD 1.9 billion), Latin America at EUR 838 million (USD 890 million), and Middle East and Africa at EUR 527 million (USD 560 million). The regions showed YOY growth rates of 13.2%, 6.5%, 22.8%, and 12.4% respectively, reflecting a balanced and dynamic global sales performance.
Future Prospects and Pipeline
During the earnings call, CEO Belén Garijo highlighted Phase III head and neck cancer candidate xevinapant as a potential blockbuster. Healthcare director Peter Guenter presented Phase II oral drug evobrutinib as an upcoming game-changer in relapsing MS. Additionally, Guenter celebrated the company’s success in overcoming volume-based procurement (VBP) challenges in the China market for top-sellers Glucophage and antihypertensive Concor (bisoprolol), indicating that the China market is no longer a drag on the Cardiovascular, Metabolism, and Endocrinology portfolio.-Fineline Info & Tech
