Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Xetra  >  Merck KGaA    MRK   DE0006599905

MERCK KGAA (MRK)
Mes dernières consult.
Most popular
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets

Merck KGaA Gives Details On Planned Efficiency Program

share with twitter share with LinkedIn share with facebook
share via e-mail
0
02/24/2012 | 05:51pm CEST

-- Germany's Merck provides details about efficiency program.

-- Conglomerate joins a long list of drug makers revamping themselves.

-- Merck KGaA shares fall after restructuring update.

(Adds details, share details, background.)

   By Neetha Mahadevan 
   Of  
 

Pharmaceutical and chemical company Merck KGaA (>> Merck KGaA) said Friday it launched a cost-cutting and efficiency plan in the wake of increased price pressures in the U.S. and Europe and a series of drug development setbacks.

The company said the plan could involve job cuts across all businesses and regions to reduce costs and address "unprecedented market shifts", but it didn't disclose details, saying management still needed to speak with relevant stakeholders for a mutually acceptable solution.

"Over the next two years, Merck needs to address unprecedented market shifts, increasing competition in key product areas and existing inefficiencies in its own organization to ensure the long-term success of its business model," Chief Executive Karl-Ludwig Kley said in a statement.

With its new cost-cutting drive, the German chemical and pharmaceutical company joins a long list of other drug makers who are revamping themselves in response to falling sales and profitability.

The need to cut costs is partly due to mounting pressure stemming from health care reforms in the U.S. and Europe, where governments are increasingly reluctant to reimburse expensive drugs and advocate the use of cheaper generic medicines. Companies such as AstraZeneca Plc (AZ.LN), Novartis AG (NVS), Roche Holding AG (ROG.VX), Pfizer Inc (>> Pfizer Inc.), Eli Lilly & Co (>> Eli Lilly & Co.) have all embarked on cost saving or restructuring programs to keep costs under control.

In addition to set-backs in its drug pipeline, Merck has also been hit by a slowdown in demand at its chemicals division, which led to disappointing developments in the last year and prompted it to tighten its outlook time and again.

In the second-quarter, it recorded a 6.5% drop in revenue at its chemicals division, while in the third-quarter profits fell due largely to weakness in its performance materials division.

The efficiency measures are part of Merck's comprehensive transformation program, announced last year, and comprises two phases, the company said.

In the first two years, Merck plans to set up a new leadership organization, implement efficiency measures and focus on long-term growth, while the second phase will be focused on exploiting new growth opportunities, it added.

Merck KGaA shares fell after the news and at 1545 GMT traded down 1.2% at EUR79.70, while the DAX benchmark index traded 0.6% higher.

-By Neetha Mahadevan, Dow Jones Newswires; +49 69 2972 5507; [email protected]

(Sten Stovall contributed to this article.)

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on MERCK KGAA
08:16a MERCK : Darmstadt, Germany, Brings Customers Closer to Gene Therapy Product Comm..
10/13 MERCK : MilliporeSigma Opens New Life Science Center in Massachusetts for Scient..
10/12 MERCK : The Millipore Curiosity Cube
10/12 MERCK : Learning in the Cube
10/12 MERCK KGAA : gives back to society through Merck Foundation’s program to i..
10/11 MERCK KGAA : Release according to Article 26, Section 1 of the WpHG [the German ..
10/11 MERCK : Hosts Leading Scientists at Life Science Symposium in Greater Boston
10/11 MERCK : Darmstadt, Germany, Opens New Life Science Center for Scientific Collabo..
10/11 MERCK : Presents 'Future Forum' at Boston's HUBweek 2017
10/09 MERCK KGAA : gives back to society through Merck Foundation's program to improve..
More news
News from SeekingAlpha
10/13 Merck KGaA's Bavencio an Orphan Drug for gastric cancer
09/28 Merck KGaA (MKGAY) Investor Presentation - Slideshow
09/28 YOUR DAILY PHARMA SCOOP : Celgene's CELMoD Potential, Allergan's Senate Troubles..
09/27 Pfizer and Merck KGaA's Bavencio OK'd in Japan for rare skin cancer
09/24 WEEK IN REVIEW : Zai Lab Completes $150 Million U.S. IPO; Investors Push Valuati..
Financials (€)
Sales 2017 15 390 M
EBIT 2017 3 450 M
Net income 2017 1 737 M
Debt 2017 9 928 M
Yield 2017 1,34%
P/E ratio 2017 21,99
P/E ratio 2018 20,17
EV / Sales 2017 1,44x
EV / Sales 2018 1,29x
Capitalization 12 215 M
Chart MERCK KGAA
Duration : Period :
Merck KGaA Technical Analysis Chart | MRK | DE0006599905 | 4-Traders
Technical analysis trends MERCK KGAA
Short TermMid-TermLong Term
TrendsNeutralBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 27
Average target price 110 €
Spread / Average Target 16%
EPS Revisions
Managers
NameTitle
Wolfgang Heinz Büchele Chairman-Supervisory Board
Marcus Kuhnert Chief Financial Officer
Crocifissa Attardo Member-Supervisory Board
Mechthild Auge Member-Supervisory Board
Michael Fletterich Vice Chairman-Supervisory Board
Sector and Competitors
1st jan.Capitalization (M$)
MERCK KGAA-4.68%14 409
ABBVIE53.37%153 097
KYOWA HAKKO KIRIN CO LTD23.24%10 167
JAZZ PHARMACEUTICALS PLC28.83%8 437
ZHANGZHOU PIENTZEHUANG PHARMACEUTICL LTD33.70%5 792
CONVATEC GROUP-7.44%5 572