In Merck KGaA’s Healthcare division, it discovers, develops and manufactures prescription medicines used to treat cancer, multiple sclerosis, and infertility, among other things, as well
as over-the-counter pharmaceutical products for colds and pain.
The Healthcare business sector comprises four businesses: Biopharma, Consumer Health, Biosimilars, and Allergopharma. In
2016, Healthcare generated 45% of group sales, or $15.8 billion.
Europe and North America generated 60% of Healthcare’s sales
in 2016, while in recent years the company has steadily expanded
its presence in growth markets. In 2016, Asia-Pacific and Latin
America accounted for 33% of sales.
Biopharma is the largest of the Healthcare businesses and
operates in four franchises. During the year, new data on Rebif,
Biopharma’s top-selling drug and leading multiple sclerosis (MS)
therapy were presented at both the American Academy of Neurology’s (AAN) Annual Meeting in April 2016 and the Congress
of the European Academy of Neurology (EAN) in May 2016.
In June 2016, the company reached a major regulatory milestone with the submission for registration of cladribine tablets to
the European Medicines Agency (EMA). The company says that
cladribine tablets, if approved, could lead to high and sustained
efficacy through selective modulation of B and T cells resulting in
lasting resolution of inflammation.
Erbitux (cetuximab) remains the second best-selling drug in
the portfolio of the Biopharma business and is the company’s
flagship product in oncology. In April 2016 Merck reached a ma-
jor milestone regarding its expansion in growth markets with the
positive results of the pivotal Chinese Phase III TAILOR study.
Also, through a strategic alliance with Pfizer, the company
continued to make progress in the development and envisaged
commercialization of avelumab, an investigational fully human
anti-programmed death-ligand 1 (PD-L1) antibody.
The positive results from JAVELIN Merkel 200, the pivotal
Phase II study in patients with metastatic Merkel cell carcinoma
(MCC) treated with avelumab in second or subsequent lines of
therapy, were presented at the American Society of Clinical Oncology (ASCO) 2016 annual meeting.
In terms of facility expansions, Merck KGaA continued to invest in its manufacturing network across the globe. In 2016, it
completed the construction of a new facility in Nantong, China
and expanded a plant in Rio de Janeiro, Brazil, as well.
The company also unveiled plans to invest more than € 50 million
in a new packaging center of excellence at its pharmaceutical manufacturing site in Darmstadt while also completing the expansion of its
plant in Tres Cantos, Spain. In Aubonne, Switzerland, it pushed forward with the construction of a new packaging center there as well.
In the U.S., the company revealed plans for a new $115 million
hub in Burlington, MA, that will serve as a major center of operations for the North American Life Science business. The new
campus will also house an M Lab Collaboration Center. CP
Bavencio bladder cancer, metastatic merkel cell
Cladribine tablets relapsing-remitting multiple sclerosis
Avelumab metastatic urothelial carcinoma
PHASE IIB AND BEYOND
Avelumab non-small cell lung cancer, 1st, 2nd line,
MSB 11022 chronic plaque psoriasis, biosimilar
EARLY RESEARCH PROJECTS
M2698 solid tumors
M3814 solid tumors
Avelumab hematological malignancies
M2951 systemic lupus erythematosus
TOP SELLING DRUGS
DRUG INDICATION 2016 SALES (+/-%)
Rebif multiple sclerosis $1,834 -7%
Erbitux oncology $927 -6%
Gonal-f fertility $793 6%
Concor cardiovascular disease $454 -10%
Glucophage type 2 diabetes $409 -14%
Euthyrox hormone therapy $350 3%
Headquarters: Darmstadt, Germany
YEAR ESTABLISHED: 1668
REVENUES: $15,828 (+13%)
NET INCOME: $1,716 (+41%)
R&D: $2,081 (+11%)
18 MERCK KGAA