Germany's Merck open to more M&A for its Life Science division (updated)

Sartorius AG

17/10/2024 09:18

(Rewrites paragraph 1 with M&A view, adds Healthcare division
plans in paragraphs 6-7, share move in paragraph 4)
       Oct 17 (Reuters) - German science and technology group
Merck  MRCG.DE  is open to more acquisitions for its Life
Science business after announcing in May it would buy Mirus Bio
for $600 million, it said ahead of its Capital Markets day on
Thursday.
    "Our guiding principle is and always has been, the right
target, at the right time, for the right price," CEO Belen
Garijo said in a statement.
    "For larger future transactions, Merck is focusing on the
Life Science business sector," the firm added.
    Shares in the group were up 6.06% at 0727 GMT. ODDO BHF
analyst Oliver Metzger attributed the move chiefly to gains in
German pharma peer Sartorius  SATG.DE , whose shares jumped 13%
on Thursday after it said it expects an improved second half. 
    Merck narrowed expectations for its Life Science business,
aiming for annual organic sales growth in a 7-9% range from a
previously anticipated 7-10%.
    It also said it will intensify the in-licensing of drug
candidates in its Healthcare division.
    The Hesse-based company changed its outlook for its
Healthcare business to "slight growth", compared to a previously
expected mid-single-digit percentage range, due to "recently
announced pipeline setbacks", the statement said.
    Merck has reported a string of setbacks in the development
of cancer and multiple sclerosis drugs in recent years.
    The company however raised the mid-term outlook for its
electronics division to a 5-9% range from a previous 3-6%,
benefiting from high demand for chips for AI applications.

 (Reporting by Tristan Veyet and Marleen Kaesebier in Gdansk,
editing by Rachel More and Jan Harvey)
 ((Tristan.Chabba@thomsonreuters.com;))