Merck KGaA Profit Falls After Cancer Drug Candidate Dropped

By Helena Smolak

Merck KGaA's said second-quarter net profit fell after it dropped its experimental head and neck cancer drug xevinapant due to a failed late-stage trial.

The Germany-based healthcare and technology company said Thursday that net profit for the second quarter fell to 607 million euros ($654.9 million) from EUR704 million in the year-earlier period.

Net sales in its life segment fell 3.7% organically to EUR2.26 billion, in line with analysts' expectations, according to consensus estimates compiled by Vara Research.

However, sales in its healthcare and electronics businesses rose 5.3% and 7.6% organically to EUR2.14 billion and EUR957 million, respectively, beating analysts' expectations of EUR2.08 billion and EUR912.3 million.

Sales in its electronics business were boosted by higher demand for semiconductor materials. This, in addition to healthcare sales growth contributed to the group's full-year guidance lift, published Friday.

Write to Helena Smolak at [e-mail]

(END) Dow Jones Newswires

08-01-24 0154ET