Merck KGaA, Darmstadt, Germany is a leading company for innovative, top-quality high-tech products in the healthcare, life science and performance materials sectors. The company has six businesses - Biopharmaceuticals, Consumer Health, Allergopharma, Biosimilars, Life Science, and Performance Materials - and generated sales of € 11.3 billion in 2014. Around 39,000 employees work to improve the quality of life for patients, to foster the success of customers, and to help meet global challenges. Merck KGaA, Darmstadt, Germany is the oldest pharmaceutical and chemical company in the world – since 1668, the company has stood for innovation, business success and responsible entrepreneurship. In 2014, Merck KGaA, Darmstadt, Germany was represented by a total of 218 companies across 66 countries, with 69 production sites located across 21 countries.
Sales per region – 2014 (€ million/% of sales)
Distribution of employees (by region, %)
Structure of the Group
Merck KGaA, Darmstadt, Germany is a global player. Our product portfolio ranges from innovative pharmaceuticals and biopharmaceutical products, to specialty chemicals, high-tech materials, and life science tools. Until December 31, 2014 - the period covered by this report - the company used a reporting structure consisting of four divisions: The biopharmaceuticals division, Consumer Health, Performance Materials, and the life science division. The following profile likewise reflects this structure.
In line with our strategic direction effective January 1, 2015, the company has now been organized into three business sectors: Healthcare, Performance Materials and Life Science, which comprise the Group’s six businesses. This structure will be used in the Group's reports as of January 1, 2015.
The biopharmaceuticals business discovers, develops, manufactures, and markets innovative pharmaceutical and biological prescription drugs to treat cancer, multiple sclerosis (MS), infertility, and growth disorders, as well as certain cardiovascular and metabolic diseases. Headquartered in Darmstadt, Germany, the biopharmaceuticals business offers leading brands in specialty medicine indications, such as Erbitux® for patients with cancer and Rebif® for patients with multiple sclerosis.
Consumer Health manufactures and markets over-the-counter pharmaceuticals, focusing on a number of well-known strategic global and regional brands such as Neurobion®, Bion®3, Seven Seas®, Nasivin®, Femibion®, and Dolo-Neurobion®, as well as Floratil®, Sangobion®, Vigantoletten®, Apaisyl®, and Kytta®.
Performance Materials comprises the company's entire specialty chemicals business. The portfolio includes high-tech performance chemicals for applications in fields such as consumer electronics, lighting, coatings, printing technology, paints, plastics, and cosmetics. Our Performance Materials business was significantly strengthened by the May 2014 acquisition of AZ Electronic Materials (AZ), a leading supplier of high-tech materials for the electronics industry.
The life science business has a broad product and technology portfolio, offering innovative solutions for scientists and engineers in the life science industry. The life sciences comprise the fields of science that involve the scientific study of living organisms. The life science business’ products and services are used in the research, development and manufacture of biotechnological and pharmaceutical drug therapies, as well as in research and application laboratories. Products and services from the life science business also extend to adjacent markets, such as the food and beverage industry.
Sales by division – 2014 (€ million/% of sales)
Corporate governance
Merck KGaA, Darmstadt, Germany is operated in the legal form of a Kommanditgesellschaft auf Aktien (KGaA, corporation with general partners) and is headquartered in Darmstadt, Germany. The general partner E. Merck KG, Darmstadt, Germany holds around 70% of the total capital of Merck KGaA, Darmstadt, Germany (equity interest); the shareholders hold the remainder, which is divided into shares (share capital). Merck KGaA, Darmstadt, Germany shares have been included in the DAX® 30, the blue chip index of the Deutsche Börse, since 2007. In September 2008, the company was added to the FTSE4Good Index, a sustainability index that evaluates the social, ecological and ethical conduct of companies.
Group strategy
Merck KGaA, Darmstadt, Germany focuses on innovative and top-quality high-tech products in the healthcare, life science and performance materials sectors. Our goal is sustainable, profitable growth, which we intend to achieve by growing organically and cultivating our existing competencies, as well as by making targeted acquisitions that complement and expand existing strengths. Building on leading products in all its businesses, the company aims to generate income that is largely independent of the prevailing economic cycles. Moreover, we are striving to further expand our strong market position in emerging markets in the medium to long term. In 2014, the Emerging Markets region accounted for 38% of Group sales.
More information about our Group strategy can be found in our Annual Report 2014.
