HALISTER1: Merck KGaA Result Solid, No Reason for Optimism, Warburg Says

Merck KGaA Result Solid, No Reason for Optimism, Warburg Says

(Bloomberg) -- Merck reported a good start to the year, but the development primarily at Performance Materials and the moderate organic growth rate reported for LifeScience give no reason to become more optimistic, Warburg analyst Ulrich Huwald write in client note.
  • Rates stock hold, PT EU116
  • Rather cautious FY guidance will not trigger earnings upgrades
  • Performance Materials had a “moderate” start to the year also reflected in FY guidance, LifeScience was “roughly in line” and Healthcare reported “healthy” organic sales lifted by modified distribution agreement for Glucophage in China
  • While Rebif and Erbitux had good start to the year, pressure on both products will remain, especially on Erbitux due to competition (Vectibix for example) and pricing
  • Says Merck is currently valued roughly in line with its peers
  • NOTE: Merck KGaA Profit to Show Little Change After New Drug Nod
--With assistance from Francesca Cinelli. To contact the reporter on this story: Roxana Zega in Zurich at rzega@bloomberg.net To contact the editors responsible for this story: Celeste Perri at cperri@bloomberg.net Brian Lysaght

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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MRK GR (Merck KGaA)

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