Merck KGaA doubles profits

Merck KGaA has doubled its profits during the last quarter, it has been reported.

The company recorded exceptional gains related to its attempted takeover of Schering AG. When Bayer attempted to buy Schering AG in May and June, Merck KGaA bought up shares in Schering AG for 79.35 euros each, amounting to 21.4 per cent of the total stock – bought in order to “protect its long-term strategic interest in Schering”.

Merck then agreed to sell its stock in Schering to Bayer for 89 euros per share, resulting in an extraordinary gain of 397 million euros (271.4 million pounds).

However, even excluding this gain, the company said that profits had risen by 40 per cent, aided by increasing sales of Erbitux, which two weeks ago was approved by the Scottish Medicines Consortium for a new indication of head and neck cancer.

With further approvals for Erbitux for head and neck cancer still to come, Merck KGaA said that it expected Erbitux sales to continue to grow. Additionally, clinical trials are ongoing to assess the drug’s effectiveness as a first- and second-line treatment for colorectal cancer, as well as non-small-cell lung cancer.

Another colorectal cancer treatment, UFT, has been launched in the UK, the company said.

Michael Roemer, chairman of Merck KGaA’s executive board, stated: “These second-quarter results demonstrate that Merck is a very profitable company.”

“With this kind of financial strength and our focus on innovative products, we are well prepared for the coming years,” he added.

The company said it had expanded clinical research and development resources, partly contributing to an increase of 825 staff compared to the end of 2005.

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