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German drugmaker Merck sees Q4 net more than double to $355 million

By: David McHugh, The Associated Press

Thursday, Mar. 7, 2013 at 2:17 AM | Comments: 0

FRANKFURT - Merck KGaA saw its profit more than double in the fourth quarter as the German pharmaceutical company benefited from higher prices for its Rebif multiple sclerosis drug and reaped rewards from its ongoing restructuring.

The Darmstadt-based company said Thursday that its net profit rose to €272 million ($355 million), from €133 million in the same quarter the year before. Revenues rose 8 per cent to €2.83 billion.

Merck was able to charge more for Rebif in the United States. For the full year, Rebif sales increased 7.5 per cent to €1.89 billion. That offset slower sales growth for its Erbitux cancer drug.

The company benefited from leaving unprofitable lines of business and regions in its consumer health division, which overall saw lower sales but higher profits as the company focused its efforts and investments on more lucrative products and regions. It outsourced the manufacturing and packaging of its Seven Seas brand cod liver oil products in Britain, for instance.

Earnings also received a boost from its business in liquid crystal materials used in flat panel displays. The performance materials division, where the liquid crystal business provides the bulk of sales, saw revenues grow 21 per cent in the fourth quarter. The division's numbers were boosted 7 per cent for all of last year due to the dollar's stronger exchange rate with the euro, which magnifies euro earnings figures. The division gets the bulk of its sales in dollars.

For the full-year, profits decreased 7 per cent to €567 million as the company took €504 million in non-repeating restructuring charges. Revenues rose 9 per cent to €11.17 billion.

The company raised its dividend by 13 per cent to €1.70 per share.

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