MRK Merck KGAA

   By Mauro Orru 
 

Merck KGaA is targeting sales of about 25 billion euros ($29.54 billion) by 2025 as it plans a significant ramp-up in investments.

The German pharmaceuticals-and-chemicals company said Thursday that it expects to boost investments between 2021 and 2025 by more than 50% compared with the period from 2016 to 2020.

The company will allocate more than 70% of investments to the process-solutions business within the life-science business sector, new products from the healthcare business sector as well as the semiconductor-solutions business within the electronics business sector.

Around 80% of the planned sales growth is expected to come from the three businesses, the company said.

"We will allocate our capital in a very targeted and disciplined manner, regardless of whether for fixed assets, acquisitions or research and development," Chief Executive Belen Garijo said.

Merck KGaA should have a high single-digit billion euro amount for acquisitions as of the end of 2022, with the company saying that smaller to medium-sized acquisitions will be more likely than major deals.

Meanwhile, the company is raising its medium-term growth forecast for the life-science business sector, targeting average organic sales growth of 7% to 10% per year, rather than between 6% and 9% as previously expected.

For the healthcare business sector, Merck KGaA targets medium-term average annual organic sales growth in the mid single-digit percentage range.

For the electronics business sector, it expects organic growth between 3% and 6% per year on average between 2021 and 2025.

Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94

(END) Dow Jones Newswires

September 09, 2021 02:39 ET (06:39 GMT)

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