Merck KGaA sees 34% profit rise in 2005 despite drop in pharmaceutical product sales

German drugmaker and industrial chemicals group Merck KGaA says that its fourth-quarter 2005 net profits increased 34% to 109.5 million euros ($130.1 million) from 81.5 million euros earned in the same period in 2004. In addition, the quarter saw sales revenue of 1.5 billion euros, an increase of 15% on the comparable period in the previous financial year.

The firm says that it improved its performance throughout 2005, and saw an overall 9.9% increase in sales across all six of its divisions, due to increased demand for its liquid crystal products from its chemical business. Conversely, the company's pharmaceuticals section performed less well, with sales from its ethical drugs lines reaching 1.72 billion euros for the year, slightly behind analysts' estimates of 1.74 billion euros.

Sales of the anticancer drug Erbitux (cetuximab), which Merck co-promotes with its New York, USA-based partner ImClone Systems, also dipped below forecasts, with sales of 218.0 million euros for the year. The firm anticipates European Union approval for Erbitux as a treatment for head and neck cancer in 2006 under a filing with European regulatory authorities submitted late last year (Marketletter September 05, 2005). The company also filed a similar application with the US Food and Drug Administration at around the same time.