Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on MERCK KGAA. We currently have 6 research reports from 1 professional analysts.
|06Dec16 02:00||PRN||Merck's Consumer Health Business Drives Consumer-Centric, Purposeful Innovation|
|06Dec16 09:00||PRN||Merck's Consumer Health Business Drives Consumer-Centric, Purposeful Innovation|
|29Nov16 01:21||PRN||FDA Accepts the Biologics License Application for Avelumab for the Treatment of Metastatic Merkel Cell Carcinoma for Priority Review|
|17Nov16 08:15||PRN||With an Extended Fertility Technologies Portfolio Merck Now Covers All IVF Steps|
|14Nov16 01:00||PRN||Merck KGaA, Darmstadt, Germany's Phase IIb ADDRESS II Results Confirm Potential of Atacicept as a Candidate Therapy for SLE|
|02Nov16 01:56||PRN||Merck KGaA, Darmstadt, Germany, Presents Phase II Data on the Safety and Efficacy of Atacicept at the 2016 ACR/ARHP Annual Meeti|
|02Nov16 12:00||PRN||Merck KGaA, Darmstadt, Germany, Presents Phase II Data on the Safety and Efficacy of Atacicept at the 2016 ACR/ARHP Annual Meeting|
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Research reports on
Healthcare and Life Science see profitability push; guidance lifted
15 Nov 16
Q3 sales strongly grew +19% to €3,724m, primarily driven by the Sigma-Aldrich acquisition as organic growth was levelled out by negative FX developments. The gross profit margin dropped from 69.9% to 66.4% as a consequence of the acquisition. EBITDA strongly increased by +23% to €1,110m and net profit attributable to shareholders went up +26% to €457m. After the weak development in Q2, operating CF caught up in Q3 (+22% to €1,067m) based on the strong operating performance and additionally helped by higher NWC inflow (€172m after €157m). Lacking some higher income from the disposal of other financial assets and divestments, investing CF swung back from €418m to €-223m despite lower capex (€-208m after €-246m). Financing CF (€-702m after €2,217m) had been dominated by net gross debt issuance (€2,278m) in preparation for the acquisition in the previous year’s quarter, whereas the reported quarter saw net gross debt repayment (€-640m). In the light of the strong Q3 figures, management again adjusted FY 2016 guidance, now seeing sales at €14.9-15.1bn (unchanged), EBITDA pre one-offs at €4,450-4,600m (vs. €4,250-4,400m) and EPS pre one-offs at €6.15-6.40 (vs. €5.85-6.10).
Good organic growth, but strong increase in NWC
04 Aug 16
Q2 sales was again pushed by the Sigma-Aldrich acquisition (+19%) and was additionally helped by the strong organic growth in Healthcare and Life Science (+5%), coming in +18% higher at €3,805m. The gross profit margin declined from 68.5% to 65.4%. EBITDA strongly rose +27% to €1,069m, but net profit attributable to shareholders dropped by 9% to €312m. Despite higher D/A, operating CF weakened 5% to €311m due to higher NWC outflows (€-494m after €-366m). Lacking cash–in from the Sigma-Aldrich hedging and some other proceeds which helped the previous year’s figure to end up at €1,860m, investing CF in the reported quarter swung to €-114m. Financing CF (€357m after €174m) was mainly hit by bond repayments. Management adjusted its recent FY 2016 guidance, now seeing sales at €14.9-15.1bn (€14.8-15.0bn), EBITDA before one-offs at €4,250-4,400m (€4.1-4.3bn) and EPS before one-offs at €5.85-6.10 (€5.65-6.00).
Healthcare back on track?
19 May 16
Clearly pushed by Sigma (portfolio: +20%), Merck’s sales rushed upwards +21% (organic: +5%) to €3,665m whereas the gross profit margin declined from 68.0% to 64.3%. EBITDA jumped +60% to €1,282m, also benefiting from the sale of the rights to Kuvan®, and net profit attributable to shareholders more than doubled, helped by a slightly lower tax rate. Operating CF did not fully reflect the operating performance (+26% to €352m) as the neutralisation of the gain on disposal of assets (€-388m after €-15m) were the party pooper. NWC outflow were €-279m after €-312m. Mainly due to the lower net inflow from the disposal of financial assets (€114m after €453m), investing CF moved from €392m to €284m. Primarily due to the absence of a net bond issuance of €-2,363m, financing CF swung from €2,288m to €-572m. Management shared some more details on its FY 2016 guidance, seeing sales at €14.8-15.0bn, EBITDA pre one-offs at €4.1-4.3bn and EPS pre one-offs at €5.65-6.00.
Healthcare remains weak, Life Science becomes the new shining star
08 Mar 16
Q4 sales strongly rose +16% to €3,464m, but gross profit margin slightly weakened from 67.0% to 66.8%. EBITDA stood unchanged at €803m, but net profit attributable to shareholders more than halved (-55% to €126m). Operating CF clearly dropped by 37% to €718m, seeing much lower NWC inflow (€71m after €465m). Reflecting the payment for Sigma-Aldrich, investing CF ended up at €-14,605m (€-1,144m) and financing CF rose from €1,519m to €2,833m. Management will propose a slightly higher dividend (€1.05 after €1.00 per share) at the AGM on 29 April 2016, paying out roughly 40% of the calculated EPS. For FY 2016, management expects slight organic growth fuelled by Sigma and sees EBITDA pre one-offs to increase in the low double-digits.
Healthcare’s continued weak dynamics
12 Nov 15
Merck’s Q3 sales rose +7% to €3,121m and the gross profit margin improved from 67.5% to 69.9%. EBITDA strongly increased (+15% to €901m), partly helped by higher D/A, and net profit attributable to shareholders jumped +46% to €364m. Operating CF increased +20% to €872m driven by the stronger operating performance and reporting higher NWC inflow (€158m after €128m). Investing CF swung from €-364m to €418m seeing much lower investments in financial assets (€-52m after €-1,346m) and lower inflow from the disposal of other financial assets (€580m after €1,142m), which gives a net inflow. Financing CF swelled from €90m to €2,217m, propelled by a €2.0bn bond repayment. Having received the final EU approval for the Sigma-Aldrich takeover on 10 November 2015, management adjusted its guidance, now expecting sales of €12.6-12.8bn (of which €300m is attributable to Sigma; previously: €12.3-12.5bn) and EBITDA pre one-offs of €3,580-3,650m (of which €80-90m is attributable to Sigma; previously: €3,450-3,550m), which looks fairly unchanged for core Merck.
Rebif in trouble and Ebitux’s loses dynamics
06 Aug 15
Q2 sales were primarily driven by favourable FX developments (+10pp) whereas organic growth contributed 2pp to the +14% total growth rate to €3,220m. Gross profit declined from 70.1% to 68.5% but EBITDA improved +10% to €845m. Net profit attributable to shareholders rose +13% to €343m. Operating CF does not reflect the good operating performance (-24% to €326m) due to significantly higher NWC (€-365m after €-193m), primarily burdened by clearly higher changes in other assets and liabilities. Investing CF (€1,860m after €-1,233m) is characterised by the cash-in from the Sigma Aldrich hedging whereas the previous year’s figure reflects the AZ acquisition. Financing CF moved from €-856m to €-174m helped by the swing in other current and non-current financial liabilities and the acquisition of outstanding interests in AZ Materials after obtaining control. Management confirmed its guidance, expecting sales of €12.3-12.5bn and EBITDA pre one-offs of €3,450-€3,550m without the impact of the expected closing of the Sigma-Aldrich acquisition.
19 Jan 17
Aggregated Micro Power* (AMPH): Funding for first peaking power plant project (CORP) | The Mission Marketing Group* (TMMG): Positive trading update (CORP) | Cello (CLL): Increasingly backed by, and leveraging, technology (BUY) | 4imprint (FOUR): Growth backed by strong cash flow continues (BUY) | Allergy Therapeutics (AGY): Positive trading update and market share gains drive upgrades (BUY) | Shanta Gold (SHG): Q4 operating results (BUY) | Sound Energy (SOU): Tendrara extended well test result (BUY) | Revolution Bars (RBG): Price target increase (BUY)
Interims results – reassuringly positive
24 Jan 17
Scientific Digital Imaging reported interim results to 31 October 2016, with adjusted EPS of 0.73p, an increase of 21%. Results included a first-time contribution from Sentek, acquired on 28 October 2015, which more than offset a c3% decline in the underlying business. Sentek accounts for c30% of group gross profits and continues to perform in line with expectations. New product development and recent product launches in Synoptics, combined with the contribution from Astles Control Systems (acquired January 2017) should drive improved profitability and free cash flow. We leave forecasts and target price unchanged at 20p.
N+1 Singer - Morning Song 19-01-2017
19 Jan 17
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N+1 Singer - Best Ideas 2017 - Top picks
04 Jan 17
Today we publish our Best Ideas for 2017 - 12 stocks that we believe have excellent prospects in the current year together with a detailed discussion of what we see as the key sector and market themes for 2017. Our top picks are Cineworld, Elementis, Herald Investment Trust, Hill & Smith, IQE, MySale, Redde, ReNeuron, RhythmOne, SDL, Servelec and Severfield.
N+1 Singer - Midatech Pharma - FY trading update: revenue ahead of estimates
20 Jan 17
Midatech’s FY trading update indicates revenue for the period of c. £9.0m, ahead of our £8.0m estimate. The £16.7m (gross) capital raise announced in October allows Midatech to accelerate development of its key programmes. We continue to expect data from a gold nanoparticle (GNP) enabled Phase I diabetes vaccine trial in 2017, followed by the start of clinical trials in brain and liver cancer by early 2018. In addition, Q-Octreotide in our view represents a significant near-term licensing opportunity. We reiterate our Buy recommendation.
N+1 Singer - Sinclair Pharma - FY trading update: revenue ahead of estimates
17 Jan 17
Sinclair’s FY trading update indicates revenue for the period of £37.8m, ahead of our £35.4m estimate. Cash at period-end was slightly below our expectations at £16.8m vs. our £18.5m forecast. Sales of the five key products are in line or slightly ahead of estimates. Importantly, the early indications are positive for the US rollout of Silhouette Instalift™ with practitioner training ahead of schedule. Overall a positive trading update: we reiterate our Buy recommendation and 42p target price.