Merck KGaA (ETR: MRK), a leading German chemical, reported a 5.6% decline in its global net sales for the fiscal year 2023, amounting to €21.0 billion ($23.0 billion). This contraction was partially attributed to the adverse impact of foreign exchange rates. The company’s Healthcare division, however, posted a 2.7% increase in sales, reaching €8.1 billion ($8.8 billion), with oncology and fertility segments driving the growth. This positive trend was counterbalanced by a significant downturn in the Life Sciences and Electronics divisions, which saw sales decrease by 10.6% and 8.8% to €9.3 billion ($10.2 billion) and €3.7 billion ($4.0 billion), respectively, due to a challenging macroeconomic backdrop in China.
The company’s financial performance was also affected by the setback in the Phase III clinical trial of evobrutinib, a drug once expected to revolutionize the treatment of relapsing multiple sclerosis (MS). The trial’s failure resulted in a €95 million ($103.5 million) charge for Merck due to the cancellation of the program.
In the Healthcare sector, Merck’s top-selling product was the oncology drug Erbitux (cetuximab), which recorded sales of €1.0 billion ($1.1 billion), primarily driven by demand in China, Europe, and Latin America. Mavenclad (cladribine), an MS treatment, achieved blockbuster status with sales of €956 million ($1.0 billion). The anti-diabetic drug Glucophage (metformin) generated €882 million ($965 million), while the PD-L1 inhibitor Bavencio (avelumab) contributed €713 million ($780 million), boosted by its use in urothelial carcinoma (UC). Rebif (interferon beta-1a), another MS drug, added €709 million ($776 million) to the Healthcare division’s revenue, despite a projected 20.1% decline due to competition from oral, high-efficacy alternatives.
Geographically, Healthcare sales were dominated by Europe, which accounted for €2.5 billion ($2.8 billion) and registered a 4.5% increase. The Asia-Pacific region followed with €2.2 billion ($2.4 billion), North America contributed €1.8 billion ($2.0 billion), Latin America generated €941 million ($1.0 billion), and the Middle East and Africa brought in €546 million ($598 million). The year-over-year growth rates for these regions were -1.3%, 0.6%, 12.3%, and 3.8%, respectively.
China represented a significant portion of Merck’s global sales, contributing €2.7 billion ($3.0 billion) or 13% of the company’s total turnover across all business areas.- Flcube.com
