German pharmaceuticals and technology firm Merck KGaA has tempered expectations for 2026, prompting a 7% drop in its shares during Thursday’s capital markets day. While the company’s life science and electronics divisions are projected to improve gradually, its healthcare unit is expected to “temporarily moderate,” according to CFO Helene von Roeder.

Merck forecasts organic sales growth in a low- to mid-single-digit percentage range next year, with broadly stable earnings before interest, tax, depreciation and amortisation. This outlook reversed earlier session gains triggered by the firm’s medium-term targets, which had highlighted mid-single-digit growth across key segments. CEO Belen Garijo attributed the slowdown to pandemic assumptions that failed to materialise, noting that net sales in 2025 are now expected between €20.5 billion and €21.7 billion, well below the €25 billion target set at its 2021 capital markets day.

Despite moderating growth, Merck remains active on the acquisition front, signalling strong appetite for deals in life sciences. The company is pursuing a range of private and public opportunities, recently completing the $3.9 billion acquisition of U.S. biotech SpringWorks and planning MilliporeSigma’s purchase of JSR Life Sciences’ chromatography unit.

Geopolitical dynamics are also shaping strategy, with Merck exploring potential collaborations with the U.S. government, particularly in fertility treatments, and considering direct distribution to American patients in response to tariffs.

As Merck navigates a more tempered growth trajectory, its focus on strategic acquisitions and operational resilience underscores a shift towards targeted expansion and portfolio strengthening in life sciences, even as healthcare unit performance softens.

Discover the full details of Merck’s 2026 guidance and acquisition plans in the full article.