Pharmaceutical and technology group: boom in artificial intelligence and medicines are driving Merck

The Darmstadt-based pharmaceutical and technology group Merck is putting its weak phase after the Corona boom behind it. In the third quarter, a partially recovering business with semiconductor materials provided a boost for the DAX group. There was a boost, for example, from greater demand for materials for modern semiconductors and applications for artificial intelligence. In addition, the drug business was flourishing after Merck recently had to cope with two flops in drug research. The laboratory division, which had recently suffered from weak demand, also made progress again for the first time.

From July to September, sales increased by 1.8 percent to 5.3 billion euros compared to the same period last year. The adjusted operating result reached a good 1.6 billion euros, an increase of 12 percent. Merck thus earned more than expected in day-to-day business. After taxes, profit rose by almost ten percent to 812 million euros.

Merck wants to benefit from the hype surrounding artificial intelligence

Merck is strategically relying on the boom around artificial intelligence. AI chips must be particularly powerful. Merck optimizes the materials used for manufacturing.

“As expected, we continued our growth path in the third quarter,” said CEO Belén Garijo. “The markets in which we operate are characterized by continued robust growth trends.” Recently, Merck had to struggle because the great demand from corona vaccine manufacturers in the laboratory division had ebbed. Last year Merck had to cope with a decline in profits. The turnaround is planned for this year.

Merck clarified its forecasts for the current financial year. Accordingly, sales should be in the lower half of the range of 20.7 to 22.1 billion euros. Merck expects earnings before taxes, interest, depreciation and amortization adjusted for special effects to be around the midpoint of the target range of 5.8 to 6.4 billion euros.