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Merck KGaA's AZ deal, currencies outweigh weak drugs

By Ludwig Burger FRANKFURT (Reuters) - Merck KGaA said the recent takeover of high-tech chemicals maker AZ Electronic Materials and a strong U.S. dollar will help it overcome a drop in revenue from its best-selling drug, multiple sclerosis treatment Rebif, this year. The German diversified chemicals and healthcare group on Tuesday forecast adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of 3.45-3.55 billion euros (2-3 billion pounds) in 2015, up from 3.39 billion last year. The forecast, which does not include the $17 billion acquisition of Sigma-Aldrich Corp to be wrapped up later this year, implies an increase in adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of between 1.8 and 4.8 percent. But excluding the effect of currency swings and takeovers, Merck expects flat sales growth at its healthcare division this year, moderate sales growth at its lab supplies business and slight growth in high-tech chemicals such as liquid crystals for display screens. Top-selling Rebif, an established injectable drug to treat MS, is battling stiff competition from a new generation of oral drugs against the debilitating disease, with currency-adjusted sales plunging almost 16 percent in the first quarter. Merck saw first-quarter adjusted EBITDA rise 5.7 percent to 853 million euros for the group, slightly below the 862 million euros expected on average by analysts. (Reporting by Ludwig Burger; Editing by Maria Sheahan)