Merk KGaA revenues rise on Serono acquisition

Merck KGaA has published its results for the first quarter of 2007, with the firm reporting that its recent acquisition of Serono will have a “strong” impact on its results for the financial year.

The company recorded a 37 per cent increase in revenues to 2.2 billion euros (1.5 billion pounds) attributing this rise to the purchase of Serono, with that firm contributing sales of 490 million euros and royalty income of 60 million euros.

Meanwhile, after tax, the company saw a net loss of six million euros, compared to a net profit of 184 million euros in the same quarter last year.

Following the publication of these results, the company has predicted a “comfortable” double-digit increase for its operating results when taking into account its purchase price allocation, with organic growth of sales in the high single-digits.

Michael Roemer, chairman of the executive board of Merck, said: “With the integration of Serono, Merck has positioned itself to build upon its research leadership with competencies in both biotech and chemical pharmaceuticals.”

He added that the acquisition would impact upon revenue and profit for the full fiscal year, while the company had increased its potential with the purchase while maintaining its robust standing.

In January 2007, following the closure of its share purchase agreement and passing of resolutions by Serono, Merck announced the launch of Merck Serono as part of its pharmaceutical division.