Germany Merck 2019 q3 performance bright future will continue to grow!

, Germany's Merck Group reported third-quarter 2019 financial results showing endo-product sales of 4.05 billion euros ($4.47 billion) for the quarter, up 8.1 percent from a year earlier. Merck's business covers healthcare, life sciences and high-performance materials. The healthcare business grew 10 per cent year-on-year to 1.6 billion euros, with "the huge demand for corporate medicines in china" a key factor in global earnings growth. The life sciences business grew 12.3 per cent year-on-year to EUR 1.72 billion, while sales of high-performance materials fell 6.9 per cent year-on-year to EUR 583 million. The company's better-than-expected results are expected to result in a rise in full-year sales and earnings before interest, tax, depreciation and amortization (EBITDA) of up to EUR 16.3 billion and EUR 4.43 billion, respectively.
China is Merck's core market. The increase in performance in the pharmaceutical area was mainly due to the obstetric drug gonafen (recombinant human follicle hormone), the diabetes drug Ghuachi (metformin) and the anti-cancer drug Aybato (citoxidone). It's worth noting that sales have increased rapidly since Erbito was added to the National Health Insurance List in 2018. On a earnings conference call, company executives noted that the company did not have products for the first round of 4-plus-7 volume purchases, but Marcus Kuhnert, Merck's chief financial officer, said: "We have every reason to believe that Gwartz and Commodore will move on to the next round", which will affect the company's performance in the second half of 2020.In addition, Merck has reached strategic partnerships with a number of domestic companies to jointly establish biopharmaceutical production facilities. Udit Batra, CEO of the company's life sciences division, noted that this has resulted in strong growth of nearly 45 percent for the company's Process Solutions business. In the past 12 months, Merck has reached a development and production partnership with Versace Bio for dual-specific antibodies, a strategic alliance with Kingsley focusing on the production of granules and virus vectors, and a partnership with Tencent on intelligent digital medical services in China. However, Batra suggests that the Chinese market is relatively irregular in buying large medical devices, so life sciences companies in this part of the business growth is relatively volatile, but he is optimistic: "Conservatively, China will be the strongest growth market for companies, and will continue to grow for some time to come." "
(Sina Pharmaceutical News)