Merck KGaA reports 67 per cent rise in revenues

Merck KgaA has announced its financial results for the second quarter of the 2007 fiscal year, with the firm recording a 67 per cent rise in revenues on the same quarter in 2006 to 1.785 billion euros (1.196 billion pounds).

Operating results at the firm rose 58 per cent compared to the second quarter last year, reaching 278 million euros, the company reporting that amortisation costs relating to the purchase price allocation of Serono started their impact on results last quarter and will continue for a number of years.

The acquisition of Serono drove pharmaceutical revenues, which increased from 564 million euros in the second quarter of 2006 up to 1.249 billion euros, with the half-year pharmaceutical revenues more than doubling to 2.427 billion euros, accounting for over two-thirds of the group’s revenues.

Dr Karl-Ludwig Kley, chairman of the executive board of Merck, said: “With the purchase of Serono completed and the sale of our generics business underway, Merck is now focusing on driving growth in its two business sectors of pharmaceuticals and chemicals.”

He added that both segments showed robust performance in the first half of the year, with the company forecasting continued growth, with a high single-digit rise in sales for the full year and operating result increase of over 20 per cent.

Earlier this month, Merck Serono announced the formal deslisting of the company following a cancellation of all publicly-held shares in the firm and annulment to the outstanding rights to their acquisition.