Merck KGaA (MKGAF) Q3 2026 Earnings Call Highlights: Third Guidance Raise Backed

Merck KGaA (MKKGY) reported Q3 earnings with accelerated growth, raised full-year guidance, and announced strategic investments. Key highlights include 5.1% organic sales growth, EUR 1.66B operating cash flow, and plans to acquire Silence Therapeutics. Management emphasized growth in biomanufacturing, semiconductors, and rare diseases, while noting Mavenclad's declining sales and softer demand in consumer electronics.

Merck (MRK) and Moderna (MRNA) plan to file intismeran for melanoma this year, with trial data showing a 42% reduction in recurrence or death risk. Merck expects earnings guidance for 2027 on Feb. 2, with analysts forecasting flat EPS of $8.98. Keytruda, Merck's top-selling drug, faces patent expiration in 2028. Merck trades at 17.5x forward earnings, above its five-year average.

Merck KGaA (MRK) reported Q3 operating cash flow of EUR 1.66 billion, up 10%. It raised full-year Electronics organic sales growth forecast to 10-11% and expects Bio-Techne acquisition to boost sales growth. Life Science sales grew 6.1%, with Process Solutions up 10.5%. Healthcare sales declined due to Mavenclad pressure, but rare disease portfolio showed growth.

The Liver Meeting 2026 highlighted advancements in hepatitis delta, PBC, and MASH treatments. Vir Biotechnology's elebsiran and Mirum Pharmaceuticals' brelovitug showed promising phase 3 results for hepatitis delta, with regulatory submissions expected in 2027. GSK's bepirovirsen received FDA approval for hepatitis B. Merck's efinopegdutide and Altimmune's pemvidutide showed potential in MASH treatment. Real-world data indicated cost concerns with MASH therapies.

Merck KGaA reported Q3 2026 net sales of €5.4bn, up 5.8% YoY, and raised full-year guidance for the third time, citing strong Electronics growth of 13% and Life Science growth of 6.1%. However, the company warned of a steep decline in Mavenclad sales and tougher comparables ahead. Management expects full-year organic sales growth of 3%-4% and EPS pre of €8.30-€8.70.

Merck KGaA (MKKGY) reported Q3 2026 results and raised its full-year guidance for the third time this year, citing progress on its $11.3B acquisition of Bio-Techne. The company expects the deal to close by the end of 2026, subject to regulatory approvals. The acquisition is part of Merck's strategy to expand its life sciences business. According to the company, the deal will enhance its capabilities in research and diagnostics.