Merck KGaA lifts 2026 profit outlook on demand for lab supplies
Merck KGaA's Financial Performance and Outlook
Raised 2026 Profit Guidance
FRANKFURT, May 13 (Reuters) - Germany's Merck KGaA raised its guidance range for 2026 adjusted operating profit on Wednesday, citing stronger demand for its lab supplies along with competition for its Mavenclad multiple sclerosis drug.
EBITDA Projections for 2026
Earnings before interest, taxes, depreciation and amortisation (EBITDA), adjusted for special items, will likely be between 5.7 billion euros and 6.1 billion euros ($6.7 billion and $7.15 billion) this year, it said in a statement. That compares with 6.1 billion reported for last year.
The family-controlled maker of drugs and drug production gear had previously projected a range of 5.5 billion euros to 6.0 billion euros for this year.
Market Reaction and Analyst Expectations
Its shares jumped 8% to a two-month high at 0704 GMT, as the new guidance offered some upside to average analyst expectations of 5.8 billion euros for 2026.
Impact of New CEO
The brighter prospects mark a strong start for new CEO Kai Beckmann, who was promoted from head of the electronics division earlier this month.
Quarterly Performance and Life Science Unit
First-Quarter Results
First-quarter adjusted EBITDA slipped 0.3% to 1.53 billion euros, beating average analyst expectations of 1.46 billion euros, based on a consensus posted on the group's website.
Growth in Life Science Unit
It added that revenues at its life science unit, a maker of lab supplies and equipment, gained a currency-adjusted 8.3%, driven by demand for drug manufacturing equipment.
Supply Chain Factors
The group's quarterly report stated that was partly because one customer filled a new warehouse and others stockpiled due to the Iran war, which has triggered global economic turmoil and supply chain disruptions in some sectors.
Mavenclad and Future Growth Strategies
Mavenclad Sales and Generic Competition
Meanwhile, Merck KGaA, which had previously guided for U.S. sales of Mavenclad to drop off in March due to the launch of generic copies, extended that date to May.
Offsetting Mavenclad Slump
To offset the slump in Mavenclad, which was a key growth driver up to last year, Merck is banking on therapies for rare cancer types from the $3.9 billion takeover of SpringWorks Therapeutics last year.
Additional Information
($1 = 0.8523 euros)
(Reporting by Ludwig Burger and Patricia Weiss; Editing by Linda Pasquini, Kirsti Knolle and Joe Bavier)
