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FRANKFURT, Oct 19 Reuters Germany39;s diversified group Merck KGaA has raised the prospect of returning to revenue growth next year, recovering from a slump in demand for its specialty materials to produce biotech drugs and semiconductors.

We are expecting to leave the transition year 2023 behind, returning to growth in 2024, CEO Belen Garijo told Reuters ahead of the company39;s capital markets day on Thursday, referring to gains adjusted for currency swings.

Its shares were up 5 at 0735 GMT, recouping this week39;s losses, with JP Morgan analysts saying the market should be reassured by the outlook.

At the group39;s key biotech process solutions business, which helps drugmakers run cell cultures and bioreactors, large customers would likely stop drawing on inventories and place orders, with sales picking up again in the first half of the year, Merck said in a statement.

During the pandemic, makers of drugs and vaccines purchased excess amounts of Merck39;s supplies such as filters and bioreactors, which were repurposed for other products after the pandemic.

The market for semiconductor materials sold by the company39;s Electronics division, should recover incrementally in 2024, Merck added.

It appears for Electronics the recovery in 2024 could be more muted, JP…