Merck KGaA reported earnings that topped estimates as strong demand for cancer drugs Bavencio and Erbitux helped cushion a slump in Covid-related products.
Third-quarter adjusted earnings before interest and taxes were €1.45 billion ($1.6 billion), above the €1.38-billion average estimate of analysts surveyed by Bloomberg. Net sales were just shy of expectations, according to a statement Thursday.
Chief Executive Officer Belen Garijo has called this a transition year as the German company faces a slowdown after a multiyear boom for its life-science division, which churned out components needed for Covid tests, therapies and vaccines. Investors are looking for signs of a rebound from that business — long a growth engine even before the pandemic — as well as the company’s electronics unit.
Merck was boosted by robust demand for Bavencio, with sales jumping 22% to €185 million, and Erbitux, where sales grew 13% to €271 million.
Merck confirmed its targets for 2023, while specifying that organic sales and Ebitda are trending below the midpoint of their forecast ranges. The company said it expects to return to organic sales growth in 2024.
