Incyte Highlights Jakafi® (ruxolitinib) and Capmatinib Abstracts to be Presented at the 2016 ASCO and EHA Annual Meetings

On May 19, 2016 Incyte Corporation (Nasdaq: INCY) reported that more than 20 abstracts featuring its clinical development candidates will be presented at the 2016 American Society of Clinical Oncology (ASCO) (Free ASCO Whitepaper) and European Hematology Association (EHA) (Free EHA Whitepaper) annual meetings (Press release, Incyte, MAY 19, 2016, View Source;p=RssLanding&cat=news&id=2169771 [SID:1234512564]). These conferences will take place from June 3–7, 2016 (ASCO) (Free ASCO Whitepaper) in Chicago, Illinois and June 9–12, 2016 (EHA) (Free EHA Whitepaper) in Copenhagen, Denmark.

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"The abstracts to be presented at ASCO (Free ASCO Whitepaper) and EHA (Free EHA Whitepaper) illustrate both the diversity and the potential of our rich portfolio," stated Steven Stein, M.D., Incyte’s Chief Medical Officer. "We are especially pleased to present long-term data from the COMFORT-I Phase 3 study, which further advances the understanding of Jakafi in the treatment of patients with myelofibrosis. These five-year data, along with additional new data from capmatinib, our potent and highly selective c-MET inhibitor licensed to Novartis, underscore Incyte’s commitment to researching and progressing innovative therapies that have the potential to transform the lives of patients living with cancer."

Select ASCO (Free ASCO Whitepaper) Abstracts

Myelofibrosis
Long-term Outcomes of Ruxolitinib Therapy in Patients with Myelofibrosis: 5-Year Update from COMFORT-I (Abstract #7012)
June 6, 2016, 8:00–11:30 a.m., E354b Hall A
ReTHINK: A Randomized, Double-blind, Placebo-controlled, Multicenter, Phase 3 Study of Ruxolitinib in Early Myelofibrosis patients with High Molecular Risk Mutations (Abstract #TPS7080)
June 6, 2016, 8:00–11:30 a.m., Hall A, Poster Board #67b

Solid Tumors
GEOMETRY duo-1: A Phase Ib/II, Multicenter Trial of Oral cMET inhibitor Capmatinib (INC280) ± Erlotinib vs. Platinum/Pemetrexed in Adult Patients with Epidermal Growth Factor Receptor (EGFR)-mutated, cMET-amplified, Locally Advanced/Metastatic Non-small Cell Lung Cancer (NSCLC) with Acquired Resistance to Prior EGFR Tyrosine Kinase Inhibitor (TKI) Therapy (Abstract #TPS9109)
June 4, 8:00–11:30 a.m., Hall A, Poster Board #427a
Phase I Study of the Safety and Efficacy of the c-MET Inhibitor Capmatinib (INC280) in Patients with Advanced c-MET+ NSCLC (Abstract #9067)
June 4, 8:00–11:30 a.m., Hall A, Poster Board #390
Phase II Study of the Efficacy and Safety of the c-MET Inhibitor Capmatinib (INC280) in Patients with Advanced Hepatocellular Carcinoma (Abstract #4074)
June 4, 8:00–11:30 a.m., Hall A, Poster Board #66
Phase II Safety and Efficacy Results of a Single-arm Phase Ib/II Study of Capmatinib (INC280) + Gefitinib in Patients with EGFR-mutated, c-MET-positive Non-small Cell Lung Cancer (NSCLC) (Abstract #9020)
June 4, 3:00–4:15 p.m., E354b Hall A
Select EHA (Free EHA Whitepaper) Abstracts
Myelofibrosis
Long-Term Outcomes of Ruxolitinib Therapy in Patients with Myelofibrosis: 5-Year Final Efficacy and Safety Analysis from COMFORT-I (Abstract #S452)
June 11, 11:30–11:45 a.m., Hall A3
Safety and Efficacy of Ruxolitinib in Patients with Dipss Intermediate-1–Risk Myelofibrosis from JUMP: An Open-Label, Multicenter, Single-Arm Expanded-Access Study (Abstract # P296)
June 10, 5:15–6:45 p.m., Hall H
Polycythemia Vera
Ruxolitinib Reduces JAK2V617F Allele Burden in Patients with Polycythemia Vera enrolled in the RESPONSE Study (Abstract #S454)
June 11, 12:00–12:15 p.m., Hall A3
Ruxolitinib Proves Superior to Best Available Therapy in Patients with Polycythemia Vera Resistant to or Intolerant of Hydroxyurea and a Nonpalpable Spleen; Results from RESPONSE-2 (Abstract #S112)
June 10, 12:00–12:15 p.m., Auditorium 1
Essential Thrombocythaemia
Ruxolitinib Compared with Best Available Therapy for Essential Thrombocythaemia Patients Resistant or Intolerant to Hydroxycarbamide in MAJIC – An Investigator Lead Randomized Trial (Abstract #LB304)
June 10, 5:15–6:45 p.m., Hall H
Full session details and data presentations at the 2016 ASCO (Free ASCO Whitepaper) Annual Meeting can be found at: View Source Full session details and data presentations at the 21st Congress of the EHA (Free EHA Whitepaper) can be found at: http://www.ehaweb.org/congress-and-events/21st-congress/program/program-by-day/.
About Jakafi (ruxolitinib)
Ruxolitinib is a first-in-class JAK1/JAK2 inhibitor approved by the U.S. Food and Drug Administration, as Jakafi (ruxolitinib), for treatment of people with polycythemia vera (PV) who have had an inadequate response to or are intolerant of hydroxyurea.
Jakafi is also indicated for treatment of people with intermediate or high-risk myelofibrosis (MF), including primary MF, post–polycythemia vera MF, and post–essential thrombocythemia MF.
Jakafi is marketed by Incyte in the United States and by Novartis as Jakavi (ruxolitinib) outside the United States.
Important Safety Information
Jakafi can cause serious side effects, including:
Low blood counts: Jakafi (ruxolitinib) may cause your platelet, red blood cell, or white blood cell counts to be lowered. If you develop bleeding, stop taking Jakafi and call your healthcare provider. Your healthcare provider will perform blood tests to check your blood counts before you start Jakafi and regularly during your treatment. Your healthcare provider may change your dose of Jakafi or stop your treatment based on the results of your blood tests. Tell your healthcare provider right away if you develop or have worsening symptoms such as unusual bleeding, bruising, tiredness, shortness of breath, or a fever.
Infection: You may be at risk for developing a serious infection during treatment with Jakafi. Tell your healthcare provider if you develop any of the following symptoms of infection: chills, nausea, vomiting, aches, weakness, fever, painful skin rash or blisters.
Skin cancers: Some people who take Jakafi have developed certain types of non-melanoma skin cancers. Tell your healthcare provider if you develop any new or changing skin lesions.
Increases in Cholesterol: You may have changes in your blood cholesterol levels. Your healthcare provider will do blood tests to check your cholesterol levels during your treatment with Jakafi.
The most common side effects of Jakafi include: low platelet count, low red blood cell counts, bruising, dizziness, headache.
These are not all the possible side effects of Jakafi. Ask your pharmacist or healthcare provider for more information. Tell your healthcare provider about any side effect that bothers you or that does not go away.
Before taking Jakafi, tell your healthcare provider about: all the medications, vitamins, and herbal supplements you are taking and all your medical conditions, including if you have an infection, have or had tuberculosis (TB), or have been in close contact with someone who has TB, have or had hepatitis B, have or had liver or kidney problems, are on dialysis, had skin cancer or have any other medical condition. Take Jakafi exactly as your healthcare provider tells you. Do not change or stop taking Jakafi without first talking to your healthcare provider. Do not drink grapefruit juice while on Jakafi.
Women should not take Jakafi while pregnant or planning to become pregnant, or if breast-feeding.
Full Prescribing Information, which includes a more complete discussion of the risks associated with Jakafi, is available at www.jakafi.com.

AstraZeneca highlights continued progress of oncology pipeline at ASCO 2016

On May 19, 2016 AstraZeneca and its global biologics research and development arm, MedImmune, reported that they will provide an update on their extensive oncology pipeline at the annual meeting of the American Society of Clinical Oncology (ASCO) (Free ASCO Whitepaper) in Chicago, USA, on 3-7 June 2016 (Press release, AstraZeneca, MAY 19, 2016, View Source [SID:1234512562]).

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Highlights will include new data demonstrating the strength and versatility of AstraZeneca’s industry-leading line of DNA damage response (DDR) medicines in multiple types of cancer. New data will highlight the continued momentum behind AstraZeneca’s numerous immuno-oncology (IO) programmes, and showcase small-molecule developments including Tagrisso (osimertinib) in leptomeningeal (brain) disease and the highly-selective Bruton’s tyrosine kinase (BTK) inhibitor, acalabrutinib, in chronic lymphocytic leukaemia (CLL).

Sean Bohen, Executive Vice President, Global Medicines Development and Chief Medical Officer at AstraZeneca, said: "Oncology is a strategic priority for AstraZeneca because of the potential of our broad pipeline to offer transformational therapies in cancer care. At ASCO (Free ASCO Whitepaper), we will update on our next-generation portfolio focusing on DNA damage response as a breakthrough paradigm in cancer treatment, including new long-term overall survival data for Lynparza. Our increased commitment to DDR therapies complements developments in our exciting immuno-oncology pipeline, from which we are expecting clinical results over the coming year."

DDR: A promising scientific platform, a leading position for AstraZeneca

DDR is a term describing the network of cellular pathways that minimise the daily impact of DNA damage. Currently, many cancers are known to have defects in DDR pathways, which makes them dependent on and therefore, highly sensitive to inhibition of the remaining DDR pathways. Targeting DDR deficiencies to preferentially kill cancer cells, while minimising the impact on normal cells, has potential for more selective, better tolerated therapies to improve survival in multiple cancers.

AstraZeneca is developing a comprehensive pipeline of compounds that target molecular pathways across the DDR system. These include the PARP inhibitor Lynparza (olaparib); Wee1 inhibitor AZD1775, ATM inhibitor AZD0156; ATR inhibitor AZD6738, and Aurora B Kinase inhibitor AZD2811. These compounds act on different cell-cycle points to prevent tumour cells from reproducing.

At the ASCO (Free ASCO Whitepaper) congress, DDR presentations will highlight:

The potential for maintenance of DDR therapies as shown by Lynparza overall survival data from Study 19 in ovarian cancer (Abstract # 5501). This abstract has been selected as a "Best of ASCO (Free ASCO Whitepaper)" abstract.
Opportunities for combination approaches with DDR and immuno-oncology therapies as shown in a Phase I study of the PD-L1 inhibitor, durvalumab, in combination with Lynparza or a VEGFR inhibitor, cediranib, in women’s cancers (Abstract # 3015)
The importance of selecting patients with a DDR pathway defect using the right diagnostic tool (abstract #4041)
The potential of DDR therapies against multiple biological DDR targets in different tumour types, with studies of the highly-selective WEE1 inhibitor, AZD1775, in advanced high-grade serous ovarian cancer (Abstract # TPS5610), squamous cell carcinoma of the head and neck (SCCHN) (Abstract # TPS6106), advanced solid tumours (Abstract # TPS2608) and glioblastoma (GBM) (Abstract # 2008)
Immuno-Oncology: Robust development momentum on track for read-outs in H1 2017

AstraZeneca is leading in a number of first-line studies with its IO strategy, where combined PD-L1 and CTLA-4 blockade – through the combination of durvalumab and tremelimumab – may address a significant unmet medical need for cancer patients who may not benefit from PD-1 pathway drugs in monotherapy.

Key updates include presentations covering pre-clinical data, late-stage trials and biomarker research:

Early study results of durvalumab monotherapy in urothelial bladder cancer from Phase Ib Study 1108 (Abstract # 4502)
Final results from a Phase III study of tremelimumab in mesothelioma (Abstract # 8502)
New study results on safety and clinical activity of durvalumab as first-line treatment in non-small cell lung cancer (NSCLC) (Abstract # 9029)
Ongoing investigation of the potential synergistic effects of durvalumab and the CTLA-4 inhibitor, tremelimumab, in bladder cancer (DANUBE trial – Abstract # TPS4574) and SCCHN (KESTREL trial – Abstract # TPS6101)
Enhanced understanding of PD-L1 biomarker expression in relation to primary versus metastatic tumours and sample age (Abstract # 3025)
Tagrisso in brain metastasis; acalabrutinib in CLL

AstraZeneca’s strong heritage in developing innovative targeted small molecules was underscored by the recent approval of Tagrisso as the first indicated treatment for EGFR T790M mutation-positive metastatic NSCLC in the US, EU and Japan. At ASCO (Free ASCO Whitepaper), new data will highlight the importance of Tagrisso activity in leptomeningeal disease through its ability to penetrate the blood-brain barrier. Further presentations will show the growing role of circulating tumour DNA (ctDNA) testing for diagnosis and treatment monitoring.

Key updates will also include presentation on the potential of our potent, highly-selective BTK inhibitor, acalabrutinib, in chronic lymphocytic leukaemia (CLL):

Data from the BLOOM study of Tagrisso in patients with leptomeningeal disease as a complication of EGFRm-metastatic NSCLC (Abstract # 9002)
Intensive plasma ctDNA profiling in experimental trials to identify markers of acquired drug resistance (Abstract # 11530)
Acalabrutinib – preliminary results from a first-line study as first-line therapy in CLL (Abstract # 7521) and in a Phase II study in combination with pembrolizumab in metastatic pancreatic cancer (Abstract # 4130)

Abpro Announces Agreements with Two Boston Hospitals to Co-develop Therapeutics for Inflammation, Autoimmunity, Fibrosis and Oncology

On April 16, 2018 Abpro, an integrated life science company at the forefront of synthetic biology, reported co-development agreements with Massachusetts General Hospital (MGH) and Brigham and Women’s Hospital (BWH), two of the country’s leading academic medical centers (Press release, abpro therapeutics, MAY 19, 2016, View Source [SID1234525613]). By leveraging Abpro’s DiversImmune platform, Abpro will co-develop multiple monoclonal antibodies with MGH for use in its oncology and inflammation and autoimmunity research programs and with BWH for its fibrosis research, according to these independent and separate agreements.

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With MGH, Abpro will collaborate with John H. Stone, MD, MPH, Director of Clinical Rheumatology and Professor of Medicine, Harvard Medical School, and Shiv Pillai, MD, PhD, Associate Geneticist, Center for Cancer Research and Professor of Medicine, Harvard Medical School, for both fibrosis and oncology. Dr. Stone’s work focuses on vasculitis, a group of inflammatory diseases that target blood vessels. His team has identified a novel T lymphocyte that may drive the intractable condition of fibrosis across an array of human diseases. At the Pillai Lab, one of the pathways being studied suggests new approaches for the treatment of autoimmune disorders. Dr. Pillai and his colleagues have discovered novel ways to strengthen immune responses and enhance helper T cell memory that provides hope for developing more effective personalized immune-system based treatments for cancer.

"I look forward to leveraging Abpro’s platform to develop antibodies for targets that traditionally, have been difficult to target," said Dr. Shiv Pillai, who also is a member of Abpro’s Scientific Advisory Board. "I have been familiar with Abpro’s unique approach, and we are looking forward to working with it in our lab."

With BWH, Abpro will work with Michael B. Brenner, MD, Theodore B. Bayles Professor of Medicine Chief, Division of Rheumatology, Immunology and Allergy, Brigham and Women’s Hospital, in the areas of inflammation and autoimmunity. In addition to the full development of basic research in areas relevant to rheumatic and allergic diseases, translational research and clinical research at the population level and patient therapeutics, the division has also organized and integrated much of its research to provide interdisciplinary progress in several key human diseases.

According to these co-development agreements, MGH and BWH will work with Abpro towards the development of new therapeutic antibodies using Abpro’s Diversimmune platform, which is designed to generate antibodies with high sensitivity and specificity for advancing human health.

Abpro’s products and discovery services are used by leading academic labs and companies around the world for life science research purposes, such as therapeutics, diagnostics and research products. Abpro has formed multiple partnerships around novel biomolecules with leading biotechnology and international pharmaceutical companies including Amgen, Eli Lilly, Genzyme, MedImmune, Merck, Novartis, Pfizer, and others. In addition, Abpro has collaborated with several academic research centers, including Harvard University, Massachusetts Institute of Technology and Stanford University.

REOLYSIN® Demonstrates Increase in Objective Response Rates in Female Patients and in Patients with Liver Metastases

On May 19, 2016 Oncolytics Biotech Inc. ("Oncolytics" or the "Company") (TSX: ONC) (OTCQX: ONCYF) (FRA: ONY) reported preliminary data from a randomized Phase II clinical trial of its lead product, REOLYSIN, in combination with FOLFOX-6 and bevacizumab (Avastin) in patients with advanced or metastatic colorectal cancer (IND 210) (Press release, Oncolytics Biotech, MAY 19, 2016, View Source [SID:1234512601]). The study is being sponsored by the National Cancer Institute of Canada ("NCIC") Clinical Trials Group ("CTG") at Queen’s University in Kingston, Ontario. The preliminary analysis includes data from an NCIC study summary report, and follows the release of an abstract to be presented at the American Society of Clinical Oncology (ASCO) (Free ASCO Whitepaper) ("ASCO") Annual Meeting, which will run from June 3-7, 2016 in Chicago, IL.

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Highlights


Objective Response Rate

(%)

Progression Free Survival
(months)

Median Overall Survival
(months)1

Test

Control

Test

Control

Test

Control

Female
Patients

63.2 (n=19)

23.8 (n=21)

7.43 (n=19)

8.08 (n=21)

19.3 (n=19)

14.5 (n=21)

Male
Patients

46.9 (n=32)

41.9 (n=31)

7.33 (n=32)

9.26 (n=31)

15.4 (n=32)

15.7 (n=31)

Overall



52.9 (n=51)

34.6 (n=52)

7.33 (n=51)

9.13 (n=52)

15.57 (n=51)

15.21(n=52)

Source: Report of Statistical Analysis for NCIC CTG Protocol Number IND.210

1 This was an interim analysis, as 62 (60.2%) patients out of a total of 103 patients were alive at the time of data cut-off. All of the median survivals noted could change at final analysis.


The abstract reported that the overall test arm had an objective response rate of 52.9% (n=51) versus 34.6% (n=52) in the control arm (p=0.06). The Company conducted a pre-planned analysis of patient responses by gender, as specified in the study protocol. The male patients in the test arm had an objective response rate of 46.9% (n=32) versus 41.9% (n=31) in the control arm (p=0.6747). The female patients in the test arm had an objective response rate of 63.2% (n=19) versus 23.8% (n=21) in the control arm (p=0.0054).

"We are encouraged by these preliminary data from the NCIC study suggesting that the inclusion of REOLYSIN in the treatment combination may have a profound impact on response rates for women with colorectal cancer," said Dr. Brad Thompson, President and CEO of Oncolytics Biotech Inc. "Various immune-based therapies have demonstrated a profile where patients derive tumour response and overall survival benefit with limited or no impact on progression free survival. REOLYSIN, as an oncolytic virotherapy, appears to be demonstrating a similar profile in female patients with advanced or metatstatic colorectal cancer. This is a further example of our sponsored randomized Phase II program identifying specific indications, patient populations and endpoints for examination in future trials to be conducted by Oncolytics. Building on these findings, we intend to conduct a study in female metastatic colorectal cancer patients using this treatment regimen combined with a checkpoint inhibitor."

Analysis of Patients with Liver Metastases
The Company conducted an additional analysis of all those patients (both male and female) with liver metastases, with or without metastases to other sites. For patients who had metastases to the liver, those treated with REOLYSIN had objective tumour response rates of 55% (n=40), versus 28.6% (n=42) for those who did not receive REOLYSIN (p=0.0077). For the patients who did not have liver metastases (21 of the 103 patients), there was no statistically significant difference in response rate (five of 11 in the test arm, versus 6 of 10 in the control arm).

"When cancer spreads to the liver, treatment becomes more difficult, leading to a drop in response and survival rates," said Dr. Thompson. "Based on these randomized data, we believe that REOLYSIN may have particular utility in those patients who have late-stage colorectal cancer with liver metastases."

Colorectal Cancer Clinical Program: Next Steps
Based on these results, Oncolytics has filed for a U.S. Phase II run–in study examining the treatment of female patients with metastatic colorectal cancer with FOLFOX-6, bevacizumab, REOLYSIN, and the checkpoint inhibitor pembrolizumab (KEYTRUDA). Subject to confirmation of overall responses, liver metastases-specific responses, and immune marker analyses, the Company intends to conduct a registration study using the modified therapeutic regime including pembrolizumab. This will be the second clinical study that Oncolytics is conducting with the addition of a checkpoint inhibitor. Oncolytics is currently conducting a standard of care, REOLYSIN, and pembrolizumab combination clinical study in patients with advanced pancreatic cancer.

Safety
The abstract also noted that, of grade 3 or higher adverse events, there was less abdominal pain (3.5% versus 17.3%, p=0.02), more hypertension (26.3% versus 3.8%, p=0.001) and more proteinuria (22.8% versus 1.9%, p=0.001) in the test arm than the control arm.

About IND 210
The study is an open-label, multi-institution, randomized, non-blinded, Phase 2 clinical study of patients with advanced or metastatic colorectal cancer. Patients were randomized to receive either REOLYSIN FOLFOX-6, bevacizumab and REOLYSIN (test arm) or FOLFOX-6 and bevacizumab alone (control arm). Patients in both arms received FOLFOX-6 and bevacizumab every 14 days, with either REOLYSIN (test arm) or placebo (control arm) administered on days one through five of cycles 1, 2, 4, 6, 8 and alternate cycles thereafter. Approximately 50 response-evaluable patients were enrolled in each arm, after a six- to nine-patient safety run-in.

The primary endpoint of the trial is progression free survival. Secondary endpoints include changes in CEA levels, objective response rate, overall survival, quality of life, and the tolerability and toxicity of the treatment combination. Other objectives include the measurement of molecular factors which may be prognostic or predictive of response.

Merck Increases Sales and Earnings in Q1 Following Sigma-Aldrich Acquisition

On May 19, 2016 Merck, a leading science and technology company, reported significant increases in sales and earnings for the first quarter of 2016. While the acquisition of Sigma-Aldrich played a major role, the business also grew organically (Press release, Merck KGaA, MAY 19, 2016, View Source [SID:1234512594]).

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"We started off 2016 well and have grown profitably. The integration of Sigma-Aldrich is progressing quickly and we are also right on target with our debt reduction," said Stefan Oschmann, Chairman of the Executive Board, in his presentation of the quarterly figures for the first time as Merck CEO. "For 2016 we continue to expect slight organic growth for the Merck Group," said Oschmann.
Group net sales increased in the first quarter of 2016 by 20.5% to € 3.7 billion (Q1 2015: € 3.0 billion). Organically, Group sales rose by 4.7% thanks to the strong operating performance of the Healthcare and Life Science business sectors. Sales increased by 19.8% due to acquisitions, which was primarily attributable to the purchase of Sigma-Aldrich. The acquisition closed in November 2015 and the business has now been consolidated for a full quarter for the first time. Merck experienced currency headwinds of -4.0%, which were mainly due to Latin American currencies. In the first quarter, Merck grew organically in all reporting regions, especially in North America and Latin America. Due to the acquisition of Sigma-Aldrich, the share of sales attributable to North America rose considerably to 26% (Q1 2015: 20%). Accounting for 33% of Group sales, Europe was our largest region.

EBITDA pre exceptionals, the key earnings indicator of the Group, rose by 27.0% to € 1.1 billion (Q1 2015: € 853 million) thanks to the good operational performance of Healthcare and Life Science as well as the Sigma-Aldrich acquisition. Group EBIT rose by 76.8% to € 849 million (Q1 2015: € 480 million). This includes the one-time effect of the gain of around € 325 million from the sale of Kuvan, which was announced in October 2015. Merck’s net income more than doubled in the first three months of the year to € 591 million (Q1 2015: € 282 million). Earnings per share pre exceptionals rose in the first quarter of 2016 by 37.5% to € 1.54 (Q1 2015: € 1.12).

Merck has started deleveraging and reduced its net financial debt in the first quarter by € 581 million to € 12.1 billion. This follows the strong increase in debt at the end of 2015 due to the acquisition of Sigma-Aldrich. As with major acquisitions in the past, Merck is aiming to rapidly and extensively reduce its debt. Merck had 50,259employees worldwide on March 31, 2016.

Healthcare posts good organic growth
The Healthcare business sector achieved good organic sales growth of 5.4% in the first quarter of 2016, growing organically in all regions except for Europe. This was canceled out by negative foreign exchange effects of -6.8%. In addition, the return of the rights to Kuvan to BioMarin Pharmaceuticals lowered sales by -1.0%. Consequently, Healthcare net sales decreased by -2.4% in the first quarter of 2016 to € 1.6 billion (Q1 2015: € 1.7 billion).

Rebif, which is used to treat relapsing-remitting multiple sclerosis, sustained a slight organic sales decline of only -1.5% in the first quarter of 2016 despite increasing competitive pressure from oral formulations. Amid slightly negative currency effects of -0.2%, Rebif sales amounted to € 422 billion (Q1 2015: € 430 million). Sales of the oncology drug Erbitux grew organically by 3.8%. Including currency headwinds of -3.2%, Erbitux sales were stable at € 207 million (Q1 2015: € 205 million). With Gonal-f, the leading recombinant hormone used in the treatment of infertility, Merck achieved strong organic sales growth of 17.0% in the first quarter. Including negative exchange rate effects, sales rose to € 187 million (Q1 2015: € 164 million).

EBITDA pre exceptionals of the Healthcare business sector grew by 10.3% to € 508 million (Q1 2015: € 461 million) thanks to solid organic performance and the end of commission expenses stemming from the co-promotion of Rebif with Pfizer, despite increased R&D spending primarily for the avelumab program in immuno-oncology.

As part of the strategic transfer of products in the Healthcare business sector, as of January 1 we shifted vitamin preparations in India from the Biopharma business to Consumer Health, where they complement the existing business. The annual sales volume of the transferred business is around € 45 million.

Life Science increases profitability both organically and through acquisition
Sales increased in the Life Science business sector in the first quarter of 2016 by 89.3% to € 1.4 billion (Q1 2015: € 738 million). Apart from solid organic growth of 8.9% across all regions, the acquisition of Sigma-Aldrich fueled sales by 81.6% or € 602 million. By contrast, foreign exchange effects only had a minor impact of
-1.3% in the reporting period.

The Process Solutions business area, which markets products and services for the entire pharmaceutical production value chain, generated strong organic sales growth of 15.9%. Applied Solutions, which serves clinical and diagnostic testing laboratories as well as the food and environmental industries, posted an organic sales increase of 3.6%. The Research Solutions business area, which focuses on academia and pharmaceutical research institutions, generated organic sales growth of 2.0%

At € 393 million, EBITDA pre exceptionals of Life Science in the first quarter was more than two times higher than in the year-earlier quarter (Q1 2015: € 184 million). The EBITDA margin pre exceptionals rose to 28.1% (Q1 2015: 25.0%).

Merck is making good progress with the integration of Sigma-Aldrich. "Since completing the acquisition in November, we have added around half of the addressable legacy Merck Millipore portfolio to the industry-leading Sigma-Aldrich e-commerce platform in the United States and 30% in Europe," said Merck CEO Oschmann.

OLED business of Performance Materials is growing further
In the first quarter, net sales of the Performance Materials business sector grew by 0.9% to € 622 million (Q1 2015: € 617 million). This reflects acquisition-related sales increases of 2.7%, which were due to the consolidation of the SAFC Hitech business of Sigma-Aldrich. Organically, sales decreased by -2.4%. This decline in sales was primarily due to the expected destocking by display industry customers.

In the Display Materials business unit, the partly strong growth seen with the innovative liquid crystal technologies such as UB-FFS could not fully offset the volume decline of older liquid crystal technologies as well as destocking by customers. However, Display Materials maintained its market leadership position. The Pigments & Functional Materials business unit delivered moderate organic growth. The Integrated Circuit Materials business unit, which includes the business with materials used to manufacture integrated circuits as well as the SAFC Hitech business from Sigma-Aldrich, generated solid organic sales growth. Within the Performance Materials business sector, the highest growth rates were achieved by the Advanced Technologies business unit. This was primarily due to the expanding business with OLED materials. A new OLED materials production unit in Darmstadt involving an investment of around € 30 million is to be commissioned in the summer to manufacture materials for ultra-modern displays and lighting.

At € 273 million, EBITDA pre exceptionals of Performance Materials was at the previous year’s level (Q1 2015: € 277 million).

Merck confirms and specifies outlook for 2016
Merck has confirmed the qualitative forecast given with the publication of the 2015 Annual Report in March 2016 and specified it. Due to the good business performance in the first quarter, Merck assumes that Group net sales will increase to between € 14.8 billion and € 15.0 billion in 2016 and continues to expect slight organic sales growth. Owing to the acquisition of Sigma-Aldrich, Merck expects a portfolio-related increase in net sales in the low double-digit percentage range. This will be countered by negative foreign exchange effects predicted to range between –3% and –5%, due especially to the continued devaluations of Latin American currencies. The forecast for EBITDA pre exceptionals at Group level in 2016 is between € 4.1 billion and € 4.3 billion. Business free cash flow of the Merck Group is expected to be between € 3.1 billion and € 3.3 billion in 2016. Merck expects earnings per share pre exceptionals of € 5.65 to € 6.00.

Forecast for FY 2016

€ million
Net sales
EBITDA pre exceptionals
Earnings per share pre exceptionals

Merck Group
~14,800 – 15,000
~4,100 – 4,300
€ 5.65 – € 6.00

Healthcare
Slight organic growth, slightly negative portfolio effect due to the divestment of Kuvan
~ 1,800 – 1,900

Life Science
Organic growth in the mid-single-digit percentage range, high double-digit percentage portfolio effect due to the acquisition of Sigma-Aldrich
~1,620 – 1,670

Performance Materials
Organic stable
~ 1,100 – 1,150

Corporate and Other
-400 – -370

Merck Group – Key figures
€ million
Q1 2016
Q1 2015
Change

Net sales
3,665
3,041
20.5%

Operating result (EBIT)
849
480
76.8%

Margin (% of net sales)
23.2%
15.8%

EBITDA
1,282
805
59.1%

Margin (% of net sales)
35.0%
26.5%

EBITDA pre exceptionals
1,084
853
27.0%

Margin (% of net sales)
29.6%
28.0%

Earnings per share (€)
1.36
0.65
> 100.0%

Earnings per share pre exceptionals (€)
1.54
1.12
37.5%

Net income
591
282
>100,0 %

March 31,
2016
Dec. 31,
2015

Net financial debt
12,072
12,654
-4.6%