Merck Group, a leading science and technology company, is projecting ‘sustainable growth’ across its life science, healthcare, and electronics businesses following strong Q1 2025 performance. The company reported group net sales of €5.3 billion for the quarter and has modified its full-year guidance, now expecting net sales between €20.9-22.4 billion and EBITDA pre-tax sales of €5.8-6.4 billion.
The slight adjustment to the guidance in Merck’s largest business sector, life science, is attributed to current uncertainties surrounding tariffs. Despite this, the process solutions division – which markets across the pharmaceutical production value chain – regained its position as the primary growth driver amid recovering demand. The healthcare sector saw robust sales in the cardiovascular, metabolism, and endocrinology franchise, while the electronics business continued to benefit from steady and strong demand for semiconductor materials.
Strategic Acquisition and Business Performance
Merck recently acquired SpringWorks Therapeutics, a Connecticut-based biopharmaceutical company focusing on severe rare diseases and cancer, in a deal valued at approximately €3 billion. This acquisition is expected to enhance Merck’s healthcare sector by sharpening its focus on rare tumors, accelerating growth, and strengthening its presence in the US market. The transaction is anticipated to close in the second half of 2025.
“As we navigate today’s complexities, we remain committed to reinforcing our position as a globally diversified pioneer in science and technology,” stated Belén Garijo, Chair of the Executive Board and CEO of Merck.
Sector Highlights
Net sales in Science & Lab Solutions reached €1.1 billion, driven by demand from pharmaceutical, biotechnology, and academic research sectors. The semiconductor solutions business, which develops products and services for the semiconductor industry, experienced 2% growth to €649 million, fueled by continued demand for semiconductor materials used in Artificial Intelligence technologies.
Garijo emphasized the impact of AI and digital technology on entering a new ‘intelligent age,’ where physical, biological, and digital realities converge. “This new epoch will fundamentally alter how people live and work, and how products are developed and made,” she noted, highlighting the importance of data foundation, technologies, and human skills in harnessing AI’s potential.
Industry Insights
The gasworld Utrecht Specialty Gas Summit, taking place from June 10-12, will provide insights into semiconductor demand amidst geopolitical, digitization, and decarbonization challenges. Dr. Thorsten vom Stein, Senior Director at Merck, will present on ‘The Specialty Gas Business in Europe in 2025’ during the summit’s opening session. The event brings together industry leaders to explore the role of specialty gases in driving progress across multiple European industries.
