Merck sees pharma earnings collapse in the second-quarter

Merck KgaA's second quarter results suffered as a result of competition from cheaper generic drugs for the most important Merck product, Glucophage. However, this development was expected on the markets, and the company's figures were slightly above expectations. In the second quarter, Merck's total turnover fell by 3.4% to €1.88bn (US$1.85bn). Excluding currency effects and changes in the consolidated group, the company would have achieved a turnover rise of 3%.

In the pharmaceuticals division, turnover fell by 9% to €792m ($780m) due to the almost complete elimination of sales of Glucophage. Without the company's own generics business, the turnover of which increased by 30% to €295m ($291m), the figures for the pharmaceuticals division would have been much worse. However, Merck expects the Glucophage business to pick up again in the third quarter.

The outlook for the year as a whole is unchanged compared with the first quarter. Merck still expects single-figure growth in turnover and a drop in the operating result by up to one third. In the best possible case, the drop in results could be limited to between 10 and 15%, said Merck boss Bernhard Scheuble.