Merck KGaA pharmaceuticals news

Merck hopes to achieve €300 million ($386.6 million) in net cost savings by 2014 through the previously announced restructuring of its Merck Serono biotech division. The target follows last month's news that the pharma will shutter Merck Serono's headquarters in Geneva, Switzerland, and eliminate 500 (40%) of the 1,250 positions at the site. Merck plans to rebuild the division's pipeline through internal research and early in-licensing, and increase the division's focus on biologics. Merck Serono also will shift investments to regions outside of Europe and potentially expand its footprint in cancer (see BioCentury, March 5 & April 30).

The division's sales are expected to grow 2-6% from €5.6 billion ($7.3 billion) in 2011 to €5.7-€5.9 billion ($7.3-7.6 billion) in 2014. EBITDA before one-time items is expected to grow 15-21% by 2014 to €1.8-€1.9 billion ($2.3-$2.4 billion). Merck Serono's 1Q12 sales grew 5% to €1.4 billion ($1.9 billion), with EBITDA before one-time items declining 2% to €394 million ($525.6 million). At March 31, Merck had €1.8 billion ($2.5 billion) in cash and a three-month operating profit of €311.2 million ($415.1 million). ...