In the first quarter, Merck grew organically by approximately three percent. However, due to negative currency effects, reported revenues fell by nearly three percent to 5.1 billion euros. Adjusted operating profit remained steady at 1.5 billion euros, representing an organic increase of more than five percent and exceeding analyst expectations of 1.46 billion euros. The primary growth driver was the Process Solutions division, which provides products, supplies, and services for drug production. Revenues there rose by over 16 percent on an organic basis.
In addition to generally higher demand, customer safety-stocking also contributed to this performance. 'Our customers are somewhat concerned about potential supply chain disruptions,' von Roeder said, referring to the situation in Iran. However, she does not expect this stockpiling to persist. 'We all hope that the conflict will de-escalate.' Alongside the laboratory division, Merck also benefited from the boom surrounding Artificial Intelligence. In the Electronics division, strong demand for materials used in cutting-edge AI chips fueled growth. Sales of semiconductor materials grew organically in the low double-digit percentage range.
In contrast, organic sales in the pharmaceutical business contracted by over three percent. The division was weighed down by increasing competition for the cancer drug Bavencio and initial losses for the multiple sclerosis medication Mavenclad in the US. Merck now anticipates that US Mavenclad sales will only be fully eroded by generic competition starting in May - two months later than previously expected. Last year, the drug was Merck's top seller with revenues of 1.2 billion euros, more than half of which were generated in the US. Von Roeder noted that further developments are difficult to predict, as a second generic is currently entering the market.
The new Merck CEO Kai Beckmann, who took the helm in May from Belen Garijo (who moved to the French pharmaceutical group Sanofi), announced a sharpening of the strategic focus. The emphasis will be placed more heavily on integrated customer solutions. He stressed that this does not involve structural changes. Rather, the company aims to become faster and more flexible by pooling expertise - such as in AI or the integration of acquired companies - group-wide in the future, instead of utilizing it in isolation within the divisions. Acquisitions also remain a key growth lever. In the pharmaceutical sector, the focus is on active ingredients in early stages of development to strengthen the pipeline.
(Report by Patricia Weiss, edited by Myria Mildenberger. For inquiries, please contact our editorial office at berlin.newsroom@thomsonreuters.com (for politics and economics) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)
