Deal for Millipore starting to pay off for Merck KGaA

MRK

Recently acquired Millipore pumped nearly $900 million in additional revenues into Merck Group KGaA (XETRA:MRK) during the second half of 2010, including a $465 million, fourth-quarter contribution.

The German chemical and pharmaceutical manufacturer completed its $7.1 billion (€5.1 billion) merger with Millipore July 14, 2010, forming Merck Millipore with remnants of its former Performance & Life Sciences unit. The new division immediately established itself as a growth nexus within the combined companies, now accounting for roughly one-quarter of all revenues at Merck and about one-fifth of its sequential growth in Q4 over the prior quarter.

Merck executives late Monday forecast a rise in revenues of 13 percent to 18 percent company-wide during 2011, suggesting a jump as big as $2.3 billion to $17.4 billion from the $12.7 billion in overall revenues reported by Merck last year. They also said Merck Millipore should post revenue growth of between 51 percent and 56 percent, which — should that guidance pan out — would produce as much as $3.6 billion in sales.

“The guidance looks pretty punchy,” Jack Scannell, a London-based analyst for Sanford C. Berstein Ltd., told Bloomberg News. “This is a good set of numbers.”

Merck executives also raised their 2011 profit guidance, forecasting 35 percent to 45 percent growth in operating profits company-wide this year. Analysts surveyed by Thomson Reuters had been expecting Merck to predict a 20 percent increase in 2011 profits, to $1.9 billion (€1.4 billion), seeing only modest growth from best-selling drugs Rebif and Erbitux.

The initial sales mix within Merck Millipore still mostly reflects what would be expected from a combination of the two former businesses, with the bioprocess and bioscience units coming from Millipore and accounting for about 40 percent and 20 percent, respectively, of sales. The lab solutions unit contributes the remaining 40 percent of sales.

Operating profits for the new division are proving more elusive, however, falling 59 percent year-over-year to about $60.3 million (€44 million) during 2010. The fourth-quarter operating deficit was $1.64 million (€1.2 million), due to transaction and integration costs related to the Millipore acquisition.

Underlying free cash flow for the division was $360 million, up 105 percent from the prior 12 months.

RSS From Medical Design & Outsourcing

  • Albright Technologies expands their silicone offerings
    Albright Technologies, a rapid silicone prototyper, has added silicone injection molding tooling and services to its product lineup. Liquid silicone injection molding became a suitable product offering as Albright expanded its offerings to better serve the silicone molding market. While silicone prototypes are commonly manufactured with low volumes in mind; injection molded liquid silicone rubber parts are […]
  • Applied Silver launches SilvaClean, silver treatment for textiles
    Applied Silver, Inc, is launching SilvaClean, a state-of-the-art silver treatment for textiles, at the Association for Professionals in Infection Control and Epidemiology’s (APIC) forty-second Annual Conference taking place at the Music City Center in Nashville, from June 27 through June 29. Hospitals have invested significantly in reducing the potential of infection through products and processes designed […]
  • Two-Component technology for improved quality of life
    In the field of injection molding and mold making, toolcraft covers all processes within the added value chain–from the design and selection of materials through to the creation of finished and qualified products. Complete solutions offered include injection molding for parts in the small and extremely small component areas, e.g. for medical technology. Utilizing two-component […]
  • GDS security protects medical devices from hackers
    As data breaches become more commonplace with serious consequences to personal, corporate and national security, it is clear that there is no shortage of accomplished and effective hackers ready to steal data and trade it on the open market. Global Data Sentinel (GDS) has the ability to provide retroactive security to remove access to email […]
  • BRAEBON and SomnoMed combine products to combat sleep apnea
    BRAEBON Medical Corporation announces that the DentiTrac oral appliance compliance system has passed a regulatory hurdle and is now FDA cleared in the USA for use with the SomnoDent oral device. BRAEBON congratulates SomnoMed for being the first company to achieve this milestone. “We are pleased DentiTrac is launching in the US market. Accurate oral appliance […]
  • For advanced shielded plastic connector solution, ODU delivers with latest product
    ODU, a company which designs and manufactures connector solutions and cable assemblies, is announcing ODU MEDI-SNAP EMC, the advanced shielded plastic connector solutions, to the US market. ODU MEDI-SNAP EMC is the latest addition to ODU’s Push-Pull circular connectors. The advanced medical connector solution is lightweight, autoclavable, sterilizable and it offers a touch proofed housing and reliable […]
  • LifeVac steps towards availability on European markets
    On June 16, 2015, LifeVac Europe received confirmation from the UK Ministry of Health that LifeVac is now registered in the Medicines and Healthcare products Regulatory Agency public access data base. This is the final step towards acquiring the CE mark and making LifeVac available to the entire European market. “We are very excited to […]
  • A few ideas for improving productivity in medical processes
    Drive-based vibration and slosh control can help improve throughput in machines that assemble medical devices and products. Bipin Sen • Ed Lasch Bosch Rexroth Corporation www.boschrexroth-us.com Simply increasing the speed of a system that assembles medical devices, or packages medical products, seems like an easy way to boost throughput – until unwanted vibration (either induced […]
  • ODU announces MEDI-SNAP EMC for next generation medical applications
    ODU, announced ODU MEDI-SNAP EMC, the advanced shielded plastic connector solutions to the US market. ODU MEDI-SNAP EMC is the newest addition to ODU’s Push-Pull circular connectors. The advanced medical connector solution is lightweight, autoclavable, sterilizable and it offers a touch proofed housing and reliable EMI protection at the same time. ODU MEDI-SNAP EMC is available in […]
  • Evaluating the risk of device misconnections: Designing for medical devices with ISO 80369 in mind
    Beginning in the 1990s, concerns grew regarding the proliferation of medical devices fitted with luer connectors and the reports of patient injuries and deaths arising from misconnections. Thus began a many-years process to develop new industry standards for the small-bore connectors used in medical device applications. The much-anticipated ISO 80369 series of standards for small-bore […]
  • Custom molded filter screen assemblies limit contamination and reduce product failure
    Molded screen insert assemblies from Minnesota Rubber and Plastics are custom designed for water, beverage, off-highway and transportation applications to filter out fluid contaminants and reduce product failure. A wide range of screen options are available in many materials for difficult filtration applications allowing use with different fluids. Filter assembly orifice sizes available range from .71 […]

Leave a Reply