The Merck Group increased its pre-tax profits by 70% to €642 million in 2010.
Revenue increased by 20% to €9,291 million compared to 2009, mainly due to the acquisition of Millipore Corporation, and its cancer treatment Erbitux, which generated sales of €820 million.
Dr Karl-Ludwig Kley, Chairman of the Executive Board of Merck KGaA (pictured), said 2010 was a “transformational year” and the results “exceeded expectations”.
Cost of sales improved by 18% last year with gross margin also increasing by 21% to €6,905 million.
Operating results also increased by more than 70% and tripled in the fourth quarter of 2010 compared to a year ago.
The Group’s divisions, Merck Serono, Merck Millipore and the Performance Materials division, also fared well last year. Merck Serono increased total revenues by 7.6% to €5,754 million and saw full-year sales increase by 8.3%. Its five top-selling biopharmaceuticals, Rebif, Erbitux, Saizen, Gonal-f and Serostim, accounted for 61% of sales for the division.
Merck Millipore recorded growth of more than 80% and total revenues of €1,681 million; the Consumer Health Care division rose by 1.1% to €472 million; and the Performance Materials division saw full-year total revenues increase by 38% to €1,384 million from €1,006 million in 2009.
The Executive Board now expects further growth in the next two years on the back of 2010’s success.
“With Millipore included for the full year, we expect Group 2011 revenues will grow 13% to 18% and the operating result will rise by 35% to 45%,” said Dr Kley.