Weak Dollar: Merck Expects Profit Decline - Merck's 2025 profits dip as generics and weak dollar take their toll
German pharmaceutical company Merck has reported a slight decline in revenue and profit for 2025. The firm also faces growing pressure from generic competition and currency headwinds. Meanwhile, its outgoing CEO, Belén Garijo, is set to lead French rival Sanofi from late April.
Merck's annual revenue fell by 0.3% last year, reaching €21.1 billion. Net income dropped by around 6%, landing just above €2.6 billion. The company cited the weak US dollar as a key challenge, as roughly a quarter of its global sales come from the American market.
Generic competition has hit Merck's multiple sclerosis drug, Mavenclad. In Europe, its market share has plummeted from 40-50% to below 20% since March 2024, when cheaper generics launched. These alternatives, priced up to 70% lower, have been favoured by healthcare systems. US sales of Mavenclad are also expected to decline from March due to the same issue.
Looking ahead, Merck forecasts revenues of €20.0 to €21.1 billion for the current year. Operating profit (EBIT), before special items, is projected to fall to between €5.5 and €6.0 billion. Despite the financial pressures, the dividend for shareholders will stay unchanged at €2.20 per share.
Merck's financial outlook reflects ongoing struggles with generic competition and currency fluctuations. The company's leadership will soon change, as Belén Garijo departs to head Sanofi. Shareholders, however, will continue to receive the same dividend payout as last year.
