Source: Sharecast
The German company, which traces its roots back to 1668, expects net sales to come in between €20bn and €21.1bn in the current year, with earnings before interest, tax, depreciation, amortisation and adjustments (EBITDA pre) between €5.5bn and €6bn. EBITDA pre is Merck’s preferred measure of profitability.
The guidance assumes no US sales of multiple sclerosis drug Mavenclad from March 2026 onwards, "amid generic competition". Foreign exchange effects are also expected to eat into sales and earnings. Analysts had forecast profits of around €5.9bn in 2026.
The update came as Merck, which also makes materials for semiconductor manufacturing, posted a 0.3% dip in net sales in 2025, to €21.1bn. EBITDA pre ticked up 0.6% to €6.1bn. Within that, net sales rose 4% in life sciences on an organic basis, to €8.98bn, and by 3.7% in healthcare at €8.61bn.
The smaller electronics unit posted a 0.6% decline to €3.52bn.
Belen Garijo, chief executive, said: "We once again demonstrated our resilience in 2025 in the face of significant geopolitical challenges and strong currency headwinds.
"As a diversified global business with a robust portfolio and core growth drivers in process solutions, rare diseases and semiconductor solutions, we are now well-positioned for the decade ahead as Merck’s next chapter begins."
Last month Merck, which is known as MSD outside of North America, announced plans to shake up its pharmaceutical business, separating oncology operations from non-cancer drugs. The move comes ahead of its blockbuster cancer treatment Keytruda coming off patent in the US in 2028.
Other oncology drugs include Gardasil, the HPV vaccine, while non-cancer drugs include diabetes-focused Januvia and high blood pressure treatment Winrevair. Merck has previously said it intends to launch around 20 drugs in the coming years that are expected to have blockbuster status.
As at 1230 GMT, the Frankfurt-listed stock was trading down 2%. The firm remains majority owned by the founding Merck family.