Merck’s shares have hit their lowest level since mid-2020, trading at just €101.50—less than half their late-2021 peak of over €230. The stock has lost a quarter of its value this year, driven by a dismal performance in its electronics division, which missed revenue expectations by 5% and operating profit by 43%. Additional one-time provisions of €60 million further dented results. A weak dollar exacerbated the crisis, eroding €5.26 billion in Q2 revenue by nearly 2% and adjusted EBITDA by 3% to €1.46 billion. The company slashed its annual sales forecast to €20.5–21.7 billion, down from €20.9–22.4 billion.
Pharma and Lab Units Offer Limited Relief
Healthcare provided a bright spot, with multiple sclerosis drug Mavenclad surging 20.7% to €307 million and cancer treatment Erbitux growing 10.9%. Life sciences also rebounded, posting 11.5% growth in process solutions. However, electronics EBITDA collapsed by 47.6%, overshadowing gains elsewhere. While management raised its organic EBITDA growth outlook to 4–8%, investor skepticism persists amid Merck’s struggle to stabilize its weakest segment.
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