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Merck expects 2023 profit to slip as demand cools

STORY: Merck warned Thursday (March 2) that its earnings would slip this year.

The German firm is a maker of drugs, lab equipment and specialty chemicals.

It said this year would be 'challenging' due to a slowing semiconductor market.

it also blamed a fall in health crisis-related demand for its lab supplies

Merck said revenues from those supplies would likely drop to around $265 million.

That's well down on about $850 million last year.

Merck also warned high inflation would have an impact on its earnings.

Pharmaceutical majors like Pfizer and Moderna have warned of a plunge in sales of health crisis-related products in 2023.

The companies made billions from them over the past two years.

But while Merck might be warning over this year's earnings, the company reaffirmed a target of hitting $26.6 billion in sales by 2025.