Strong Earnings Growth For Merck KGaA

Germany's Merck KGaA reports first quarter EBIT (pretax earnings) up 17%at 279 million Deutschemarks ($163.3 million) for the first quarter of 1997, which it says is considerably stronger than the sales increase of 12.4% to 1.9 billion marks.

Pharmaceuticals, which account for 58% of group turnover, saw sales rise 18% to 1.1 billion marks, with prescription drugs up 12% at 931 million. Generics and over-the-counter product sales increased 76% to 237 million marks and 123% to 98 million marks respectively. The strong growth in the OTC sector is attributed to the acquisition of Seven Seas in the UK and Monot in France. Contrast media continued under pressure, despite increased output, and sales of these products fell 28% to 118 million marks. R&D spending was up 18% at 180 million marks.