Merck Group < MRCG.DE > from Germany posted a slightly greater quarterly income increase than market expectations due to powerful sales growth in its laboratory supply unit and milestone payments from its medicine development partners.
Second-quarter earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted for special items, reached € 1.14 billion (£ 1.05 billion)with a gain of 23.8%, Merck said on Thursday, The profit exceeded the Refinitiv survey’s expectations and was slightly above the analyst’s estimate of € 1.11 billion.
Merck’s Life Science unit, which produces supplies and equipment for the biotech industry, saw adjusted EBITDA gain 18% to € 533 million, due to by demand for gene-editing technology and water purification, along with other processing instruments.
The unit takes advantage of a drug industry race to create fresh therapies.
Adjusted EBITDA jumped 39 per cent to EUR 528 million at Merck’s own pharmaceutical company, assisted by agreed payments from partners Pfizer < PFE.N > for accomplishments in the development of cancer drug Bavencio and GlaxoSmithKline < GSK.L > for promoting novel bintrafusp alfa cancer immunotherapy.
Merck confirmed its guidance for an underlying 10-13 per cent EBITDA increase in 2019 and adjusted for one-off items but now sees a positive effect from currencies from 0 per cent to + 2 per cent.