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Q1 2009 Earning Report of Merck Kgaa
Q1 2009 Earning Report of Merck Kgaa
Q1 2009 Earning Report of Merck Kgaa
Q1 2009 Earning Report of Merck Kgaa
Q1 2009 Earning Report of Merck Kgaa
Q1 2009 Earning Report of Merck Kgaa
Q1 2009 Earning Report of Merck Kgaa
Q1 2009 Earning Report of Merck Kgaa
Q1 2009 Earning Report of Merck Kgaa
Q1 2009 Earning Report of Merck Kgaa
Q1 2009 Earning Report of Merck Kgaa
Q1 2009 Earning Report of Merck Kgaa
Q1 2009 Earning Report of Merck Kgaa
Q1 2009 Earning Report of Merck Kgaa
Q1 2009 Earning Report of Merck Kgaa
Q1 2009 Earning Report of Merck Kgaa
Q1 2009 Earning Report of Merck Kgaa
Q1 2009 Earning Report of Merck Kgaa
Q1 2009 Earning Report of Merck Kgaa
Q1 2009 Earning Report of Merck Kgaa
Q1 2009 Earning Report of Merck Kgaa
Q1 2009 Earning Report of Merck Kgaa
Q1 2009 Earning Report of Merck Kgaa
Q1 2009 Earning Report of Merck Kgaa
Q1 2009 Earning Report of Merck Kgaa
Q1 2009 Earning Report of Merck Kgaa
Q1 2009 Earning Report of Merck Kgaa
Q1 2009 Earning Report of Merck Kgaa
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Q1 2009 Earning Report of Merck Kgaa

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  • 1. Interim Report Q1___2009
  • 2. Contents 3 Interim Management Report of the Merck Group as of March 31, 2009 3 At a glance | Highlights 4 Merck Group 7 Merck shares 8 Business sectors 9 Divisions 9 Merck Serono 11 Consumer Health Care 12 Liquid Crystals 13 Performance & Life Science Chemicals 14 Corporate and Other 14 Risk Report 15 Report on Expected Developments 16 Interim Consolidated Financial Statements as of March 31, 2009 24 Responsibility Statement 25 Executive Board | Supervisory Board | Capital structure 26 Financial calendar for 2009 | Publication contributors 27 Business sectors and divisions Cover photo: An employee of preclinical research evaluating cultured human tumor cells
  • 3. Interim Management Report of the Merck Group as of March 31, 2009 3 3 At a glance | Highlights 4 Merck Group 7 Merck shares 8 Business sectors 9 Merck Serono 11 Consumer Health Care 12 Liquid Crystals 13 Performance Life Science Chemicals 14 Corporate and Other 14 Risk Report 15 Report on Expected Developments 1st  quarter 2009 at a glance Highlights –1st  quarter 2009 Total revenues unchanged at € 1.9 billion Operating result falls 45% to € 198 million Free cash flow declines 22% to € 164 million Rebif® sales climb 18% to € 368 million Erbitux® sales increase 11% to € 162 million Liquid Crystals books € 131 million in revenues Merck expects 2009 total revenues growth of 0%–5%, Core ROS between 15%–20% 2009 2008 Key figures – 1st quarter 2009 € million Pharma– ceuticals Chemicals Corporate and Other Total Change in % Total revenues 1,418.2 435.9 – 1,854.1 –0.2 Gross margin 1,195.6 201.8 – 1,397.4 –0.6 Research and development –276.2 –36.3 –0.4 –312.9 8.8 Operating result 183.6 37.2 –22.6 198.1 –44.9 Exceptional items –70.0 1.2 – –68.8 – Earnings before interest and tax (EBIT) 113.6 38.4 –22.6 129.3 –64.0 EBIT before depreciation and amortization 304.4 70.5 –22.2 352.7 –39.5 Return on sales (ROS) in % 12.9 8.5 – 10.7 Free cash flow (FCF) 230.5 18.2 –84.7 164.0 –22.2 Free cash flow adjusted for acquisitions and disposals 230.5 18.2 –84.7 164.0 –39.6
  • 4. 4 | Interim Report · 1st quarter 2009 Merck Group The Merck Group’s solid performance during the 1st quarter of 2009 underscores the soundness of its diversified business model that distributes risk across two major indus- tries – pharmaceuticals and chemicals. However, Merck is not an island. The current recession is affecting the company’s results, mainly in the Chemicals business sector. In addition, this year’s 1st quarter is compared to a very strong 1st quarter in 2008. Total revenues in the 1st quarter were stable at € 1,854 million. Royalty income, mainly from Merck Serono, jumped 31% to € 97 million in the 1st quarter. The gross margin was steady at € 1,397 million in the quarter. There were no significant acquisitions or divestments during the 1st quarter of 2009. In the year-ago quarter, Merck divested the Consumer Health Care division’s Spanish business biManán® for € 11 million. Merck also released unused funds from a legal pro- vision during the 1st quarter of 2008. Research and development costs rose 8.8% to € 313 million, mainly due to increased costs for accelerated late-stage clinical trials. Merck booked € –147 million in the 1st quarter for amortization of intangible assets from the 2007 acquisition of Serono, a 4.9% increase compared to the year-ago quarter, mainly due to the currency translation from Swiss francs. For these reasons, plus higher marketing and selling expenses for new pharmaceutical products and mainly because of the decline in the Chemicals operating result, the Group’s 1st quarter operating result dropped 45% to € 198 million. Chemicals Pharmaceuticals Components of growth by division in the 1st quarter 2009 (continuing operations) Change in total revenues compared to last year in  % Merck Serono Consumer Health Care Liquid Crystals Performance Life Science Chemicals Merck Group Organic growth 9.4 1.2 –39.1 –7.9 –0.6 Currency effects 1.5 –5.2 –4.8 1.7 0.4 Acquisitions / divestitures 0.0 1.0 0.1 0.0 0.1 Total 10.9 –2.9 –43.9 –6.2 –0.2
  • 5. Interim Management Report of the Merck Group as of March 31, 2009 5 3 At a glance | Highlights 4 Merck Group 7 Merck shares 8 Business sectors 9 Merck Serono 11 Consumer Health Care 12 Liquid Crystals 13 Performance Life Science Chemicals 14 Corporate and Other 14 Risk Report 15 Report on Expected Developments The Group return on sales (ROS: operating result/total revenues) declined to 10.7% in the 1st quarter of 2009 compared to 19.4% in the year-ago quarter. Free cash flow (FCF) in the 1st quarter was € 164 million compared to € 211 million in the year-ago quar- ter, as the 41% rise in FCF for the Merck Serono division could not offset declines at the other divisions. Merck booked € –69 million in exceptional items during the 1st quarter of 2009, includ- ing a € –70 million provision to cover costs associated with the suspension of the ­psoriasis treatment Raptiva® and a € 1.2 million adjustment to a previous exceptional. There were no exceptional items in the year-ago quarter. Therefore, earnings before interest and tax (EBIT) in the 1st quarter of 2009 declined 64% to € 129 million compared to € 360 million in the year-ago quarter. Merck’s financial result remained at a relatively low level but did increase in the 1st quarter by 14% to € –35 million due to higher interest payments. Merck, through its wholly owned subsidiary Merck Financial Services GmbH, launched a € 750 million Eurobond issue, the first from its recently established € 5 billion Debt Issuance Program. Proceeds from the bond issue will be used for general corporate pur- poses. The bond issue took advantage of the strong demand for corporate bonds and was heavily oversubscribed. Merck is rated A3 (stable outlook) by Moody’s and A– (stable out- look) by Standard Poor’s. Maintaining an investment-grade credit rating and a strong balance sheet are part of Merck’s financial strategy. Effects of exceptional items (continuing operations) € million 1st quarter 2009 1st quarter 2008 Change in % Operating result 198.1 359.6 –44.9 Exceptional items –68.8 – – Profit before tax before exceptional items 163.2 329.1 –50.4 Income tax before exceptional items –40.4 –86.9 –53.5 Profit after tax before exceptional items 122.8 242.2 –49.3 Tax rate before exceptional items in  % 24.7 26.4
  • 6. 6 | Interim Report · 1st quarter 2009 Merck’s profit before tax fell to € 94 million in the 1st quarter of this year compared to € 329 million in the year-ago quarter. Merck’s underlying tax rate was 24.7% for the quarter under review compared to 26.4% in the year-ago quarter. Merck’s 1st quarter profit after tax totaled € 60 million compared to € 243 million in the year-ago period. Merck had 32,700 employees worldwide on March 31, 2009, 100 or 0.3% less than the 32,800 at the end of 2008. Merck Group | Sales by region – Q1 Asia, Africa, Australasia North America Latin America Europe
  • 7. Interim Management Report of the Merck Group as of March 31, 2009 7 3 At a glance | Highlights 4 Merck Group 7 Merck shares 8 Business sectors 9 Merck Serono 11 Consumer Health Care 12 Liquid Crystals 13 Performance Life Science Chemicals 14 Corporate and Other 14 Risk Report 15 Report on Expected Developments www.investors.merck.de Merck shares The Merck share price rose 3.2% during the 1st quarter to € 66.56 on March 31, 2009, from € 64.51 on December 30, 2008. The share price high for the 1st quarter was € 70.13 recorded on January 26. The low price for the quarter was € 57.24 on March 6. Germany’s DAX® Index fell 15% during the 1st quarter and the Bloomberg Europe ­Pharmaceuticals Index dropped 13%. Share data1 1st quarter 2009 Year 2008 Earnings per share after tax and minority interest in € from continuing operations 0.26 1.69 Earnings per share after tax and minority interest in €  from continuing and discontinued operations 0.26 1.69 Share price high in €  (Jan. 26) 70.13 (Jan. 9) 93.79 Share price low in €  (March 6) 57.24 (Nov. 21) 57.67 Closing share price in €  (March 31) 66.56 (Dec. 30) 64.51 Actual number of shares in millions 64.6 64.6 Theoretical number2 of shares in millions 217.4 217.4 Market capitalization3 in € million 14,469 14,024 1 Share-price relevant figures relate to the closing price in XETRA trading on the Frankfurt Stock Exchange. 2 The calculation of the theoretical number of shares is based on the fact that the general partner‘s equity capital is not represented by shares. As the share capital of € 168.0 million was divided into 64.6 million shares, the corresponding calculation resulted in 152.8 million theoretical shares for the general partner’s capital of € 397.2 million on the balance sheet date March 31, 2009. 3 Based on the theoretical number of shares as of March 31, 2009. Bloomberg Europe Pharmaceuticals Index DAX ® Merck
  • 8. 8 | Interim Report · 1st quarter 2009 Business sectors The Pharmaceuticals business sector’s two divisions are Merck Serono for ­innovative ­prescription drugs and Consumer Health Care for over-the-counter products. The Pharma­ceuticals business sector generated 76% of the company’s total revenues and 83% of the Group operating result* during the 1st quarter. The sector’s total revenues rose 9.7% to € 1,418 million during the 1st quarter. IMS Health, the world’s leading provider of market intelligence for the pharmaceutical and healthcare industries, in its most recent global prediction on October 29, 2008 – prior to the worsening of the world financial situation – forecasted that the global pharmaceu- tical market would grow by 4.5% to 5.5% in 2009. However, according to data published March 19 by IMS, sales by the pharmaceutical industry in North America increased only 1.3% in 2008. Global pharmaceutical sales figures for 2008 are not yet available. The 1st quarter operating result for Merck’s Pharmaceuticals business sector declined by 9.3% to € 184 million from € 202 million in the year-ago quarter as a higher gross margin could not compensate for higher expenses. Merck’s Chemicals business sector also consists of two divisions – Liquid Crystals and Performance Life Science Chemicals. In the 1st quarter of 2009, it generated 24% of total revenues and 17% of the operating result*. The Chemicals business sector’s Liquid Crystals division and Pigments business unit were hard hit by the current global reces- sion as Merck customers significantly reduced stocking levels and consumers cut back on spending. Consequently, 1st quarter total revenues declined 22% to € 436 million. Meanwhile, expenses increased so that the Chemicals operating result dropped 79% to € 37 million. The German Chemical Industry Association (VCI) said on March 10 that 2009 will be a difficult year for chemicals, with sales expected to fall by an average of 6% com- pared to 2008. Sales by German chemical companies dropped an average of 11% in the 4th quarter of 2008 compared to the 3rd quarter of that year. *without segment Corporate and Other Performance Life Science Chemicals Liquid Crystals Consumer Health Care Merck Serono
  • 9. Interim Management Report of the Merck Group as of March 31, 2009 9 3 At a glance | Highlights 4 Merck Group 7 Merck shares 8 Business sectors 9 Merck Serono 11 Consumer Health Care 12 Liquid Crystals 13 Performance Life Science Chemicals 14 Corporate and Other 14 Risk Report 15 Report on Expected Developments Asia, Africa, Australasia North America Latin America Europe Merck Serono Merck Serono, the division for innovative prescription pharmaceuticals, now accounts for more than 70% of the Merck Group’s total revenues and 92% of revenues within the Pharmaceuticals business sector. Merck Serono’s total revenues increased 11% to € 1,311 million in the 1st quarter of 2009 compared to € 1,182 million in the year-ago quarter. Sales continued to improve boosted by double-digit growth for the division’s top products – the biologic therapies Rebif®, Erbitux® and Gonal-f®. Royalty income rose 37% in the 1st quarter to € 92 million. Global sales of Rebif® for the treatment of relapsing forms of multiple sclerosis jumped 18% to € 368 million in the 1st quarter compared to the year-ago quarter. Sales of the targeted cancer treatment Erbitux® increased 11% in the 1st quarter to € 162 million. The broader use of Erbitux® in combination with any chemotherapy to treat all lines of metastatic colorectal cancer (mCRC) patients with KRAS wild-type tumors contin- ues to grow. Erbitux is now approved in 75 countries to treat mCRC and in 71 countries to treat head and neck cancer. First-quarter sales of Gonal-f®, a recombinant hormone used in the treatment of infer- tility, rose 17% to € 134 million on the continued success of regional strategies to increase either market penetration or market share. Expanded use of the new electronic injection device Easypod® boosted 1st-quarter sales of the recombinant growth hormone Saizen® by 17% to € 46 million. Sales of Merck’s other growth hormone, Serostim®, jumped 18% in the 1st quarter. Outstanding life cycle management efforts continue to make Merck Serono’s classic phar- maceuticals strong contributors to overall sales. However, with the division’s focus on pat- ented innovative medicines, it has transferred some rights and sales forces for its cardiomet- abolic products to the Japanese pharmaceutical company Daiichi Sankyo. During the past eight months such transfers have been made in Germany, France, Ireland, Turkey and Italy. Total sales of bisoprolol, including the branded Concor® products such as Lodoz® and Concor®COR, fell 0.3% to € 99 million in the 1st quarter. Total sales of the Glucophage® ­(metformin) franchise of oral anti-diabetic products increased by 2.8% to € 74 million. This established product and its newer versions such as Glucophage XR® (once-daily formula- tion) and Glucovance® (combination of metformin and glibenclamide) are the worldwide “gold standard” for first-line treatment of type 2 diabetes. Sales of thyroid medicines such as Euthyrox® rose 1.3% to € 36 million in the 1st quarter, boosted by new business in China. Merck is the world market leader for thyroid medicines. Merck Serono | Key figures € million 1st quarter 2009 1st quarter 2008 Change in %  Total revenues 1,310.7 1,181.7 10.9 Gross margin 1,122.2 1,005.7 11.6 RD 271.9 249.2 9.1 Operating result 175.7 181.3 –3.1 Exceptional items –70.0 – – Free cash flow (FCF) 227.4 161.2 41.0 Free cash flow adjusted for acquisitions and disposals 227.4 161.2 41.0 ROS in % 13.4 15.3
  • 10. 10 | Interim Report · 1st quarter 2009 Sales of Raptiva®, for the treatment of moderate-to-severe psoriasis, dropped 36% ­during the 1st quarter to € 14 million and will soon cease completely. The European Med- icines Agency (EMEA) recommended in mid-February that marketing authorization of ­Raptiva® be suspended. The European Commission adopted this recommendation in April. This action came after Merck Serono notified EMEA of three virologically confirmed cases of progressive multifocal leukoencephalopathy (PML) in patients treated with Raptiva® during the previous five months. Already in the 4th quarter of 2008, Merck wrote off in full Raptiva® product technology assets of € 195 million. In the 1st quarter of this year, Merck booked a € –70 million exceptional item as a provision for any further costs associated with the suspension of Raptiva®. The division’s gross margin continued to improve, rising 12% in the 1st quarter to € 1,122 million. Research and development costs rose 9.1% to € 272 million, mainly due to increased costs for accelerated late-stage clinical trials. For example, clinical trial results confirm- ing the efficacy of Erbitux® in the up to 65% of mCRC patients with the KRAS wild-type tumors (indicating an intact EGFR pathway) were presented in January at the American Society of Clinical Oncology Gastrointestinal Cancers Symposium (ASCO GI). Merck announced in January that the CLARITY Phase III pivotal trial for its proprietary oral formulation of cladribine met the two-year primary endpoint of reducing the clinical relapse rate in patients with relapsing-remitting multiple sclerosis. An oral presentation of the study results will be given in late April at the prestigious American Academy of Neu- rology 61st Annual Meeting. A Phase III trial for safinamide, for the treatment of patients with advanced ­Parkinson’s disease, which Merck is developing with Newron Pharmaceuticals SpA, met its six-month primary efficacy endpoint. The results showed that safinamide significantly improved motor function in patients with advanced Parkinson’s disease. Kuvan® for the treatment of hyperphenylalaninemia (HPA) in phenylketonuria (PKU) or BH4-deficient patients was granted marketing authorization by the European Commission in December 2008 and the first European launch was on April 1 in Germany. Kuvan® is the first drug approved for this condition, which affects about 35,000 people in the European Union. As in past quarters, the division booked a charge of € 145 million in the 1st quarter for amortization of intangible assets from the 2007 acquisition of Serono, a 4.6% increase compared to the year-ago quarter. Increased marketing and selling expenses due to new products such as Kuvan®, a dou- bling of commission payments to third parties due to increased sales of products promoted in cooperations, and increased other expenses caused the division’s operating result to decline 3.1% to € 176 million compared to € 181 million in the year-ago quarter. The Merck Serono ROS was 13.4% for the 1st quarter compared to 15.3% in the year- ago quarter. Core ROS, which Merck defines as excluding Serono-related amortization and integration costs, decreased to 24.6% in the 1st quarter of 2009 compared to 27.5% in the year-ago quarter due mainly to higher RD, selling, marketing and administra- tive expenses. Free cash flow rose significantly to € 227 million in the 1st quarter of 2009 ­compared to € 161 million in the year-ago quarter.
  • 11. Interim Management Report of the Merck Group as of March 31, 2009 11 9 Merck Serono 11 Consumer Health Care 12 Liquid Crystals 13 Performance Life Science Chemicals 3 At a glance | Highlights 4 Merck Group 7 Merck shares 8 Business sectors 14 Corporate and Other 14 Risk Report 15 Report on Expected Developments Consumer Health Care Total revenues of the Consumer Health Care division in the 1st quarter of 2009 were ­significantly impacted by inventory destocking in Mexico, where sales to the trade fell by 76% compared to the year-ago quarter. Consequently, the division’s total revenues declined 2.9% to € 108 million. However, in these difficult times consumption remains strong, with Merck ­taking record market shares in many of its focus markets. For example, BION® is now the fourth- largest brand in the total French OTC market with a 19% share of the multivitamins ­category. In Germany, market share of the Kytta® brand of natural treatments increased three ­percentage points year on year. The division’s focus on strategic brands is paying off, with sales of those products up 5.0% in the 1st quarter versus the year-ago period. Strategic brands now account for 53% of the division’s total business. Sales of Kytta® products rose 41%, driven by a suc- cessful television campaign in its core market of Germany. Sales of Femibion®, the vita- mins and minerals supplement for pregnant women, increased 22% powered by Poland as well as Germany and Hungary. Diabion®, multivitamins especially designed for peo- ple with ­diabetes, posted 61% growth in the quarter, boosted by sales in Venezuela and Mexico. Marketing and selling costs as well as research and development expenses continued to increase due to the focus on developing strategic brands. However, the 63% decline in the division’s operating result to € 7.9 million was mainly due to the one-off gain from the divestment of the Spanish business biManán® for € 11 million in the 1st quarter of last year. Therefore, the division’s ROS was 7.3% compared to 19.0% in the year-ago ­quarter. Free cash flow in the 1st quarter was € 3.2 million compared to the year-ago amount of € 32.8 million, which was unusually high due to the divestment of the biManán® ­business. Asia, Africa, Australasia Latin America Europe Consumer Health Care | Key figures € million 1st quarter 2009 1st quarter 2008 Change in %  Total revenues 107.5 110.8 –2.9 Gross margin 73.4 74.1 –0.9 RD 4.3 3.6 20.8 Operating result 7.9 21.1 –62.7 Exceptional items – – – Free cash flow (FCF) 3.2 32.8 –90.4 Free cash flow adjusted for acquisitions and disposals 3.2 32.8 –90.4 ROS in % 7.3 19.0
  • 12. 12 | Interim Report · 1st quarter 2009 Liquid Crystals Total revenues for the Liquid Crystals division decreased to € 131 million in the 1st quar- ter compared to a robust 1st quarter a year ago. This 44% decline includes 4.8 percentage points due to negative currency effects and reflects the dramatic slow-down in the global liquid crystal panels business, both in price and volumes. Merck initiated temporary halts in production during the quarter to adjust to the lower demand for liquid crystals. It now appears that inventories are wearing down. Sales have increased month over month in the quarter and the division is cautiously optimistic that the 1st quarter was the low point for the year. Merck remains the leading supplier of high-end liquid crystals for televisions and notebook computers. In order to maintain this leading position, the division contin- ues to make significant investments in research and development so that its customers have the most innovative products. The division’s spending on RD for advanced ­Liquid Crystals materials, OLEDs, solid-state lighting and photovoltaics during the 1st quarter increased 6.3% to € 22 million. The Liquid Crystals division is beginning to move its display-manufacturing custom- ers from the Vertical Alignment (VA) technology to its new enhanced Polymer Stabilized ­Vertical Alignment (PS-VA) technology, which has just been introduced to the market. The technical advantages of PS-VA are improved moving picture quality, faster switch- ing times, higher contrast and brightness, and lower energy consumption. Major manu- facturers have already started adopting PS-VA. Merck is also providing liquid crystals for the new 200/240 Hz LCD televisions. Due to declining revenues and increased costs compared to the year-ago quarter, the ­Liquid Crystals division’s 1st quarter operating result dropped 89% to € 13 million. ROS fell to 9.7% compared to an exceptionally high 51.1% in the year-ago quarter. Free cash flow fell to € 25 million from € 119 million in the year-ago period. Liquid Crystals | Key figures € million 1st quarter 2009 1st quarter 2008 Change in %  Total revenues 131.2 233.9 –43.9 Gross margin 55.7 154.5 –64.0 RD 22.2 20.9 6.3 Operating result 12.7 119.5 –89.4 Exceptional items – – – Free cash flow (FCF) 25.3 119.3 –78.8 Free cash flow adjusted for acquisitions and disposals 25.3 119.3 –78.8 ROS in % 9.7 51.1
  • 13. Interim Management Report of the Merck Group as of March 31, 2009 13 9 Merck Serono 11 Consumer Health Care 12 Liquid Crystals 13 Performance Life Science Chemicals 3 At a glance | Highlights 4 Merck Group 7 Merck shares 8 Business sectors 14 Corporate and Other 14 Risk Report 15 Report on Expected Developments Performance Life Science Chemicals The Performance Life Science Chemicals division generated 1st quarter total revenues of € 305 million, a 6.2% decline compared to the year-ago quarter but an improvement over the € 302 million and the € 298 million recorded in the 3rd and 4th quarters of 2008, respectively. The division’s Pigments business continues to be under pressure especially due to the weakness in the global automotive industry. Sales of effect pigments to consumer-related industries also were down in the quarter. Due to the lower demand, in an accord with the Works Council, Merck will initiate reduced working hours in May for up to 500 employ- ees at its site in Gernsheim, Germany, where pigments are produced. Other pigment pro- duction sites in Savannah, Georgia, USA, Onahama, Japan, and Songjiang, China, also are affected. Meanwhile, the Life Science Solutions and Laboratory businesses posted increased ­revenues compared to the year-ago quarter. The division’s 1st quarter operating result declined 54% to € 24 million. 1st quarter ROS fell to 8.0% from 16.5% in the year-ago quarter. Free cash flow declined to € –7.2 mil- lion compared to € –0.1 million a year ago due to lower profits from the Pigments busi- ness and increased investments to support the division’s long-term growth. Asia, Africa, Australasia North America Latin America Europe Performance Life Science Chemicals | Key figures € million 1st quarter 2009 1st quarter 2008 Change in %  Total revenues 304.7 324.9 –6.2 Gross margin 146.1 172.3 –15.2 RD 14.0 13.9 1.1 Operating result 24.5 53.5 –54.2 Exceptional items 1.2 – – Free cash flow (FCF) –7.2 –0.1 – Free cash flow adjusted for acquisitions and disposals –7.2 6.8 – ROS in % 8.0 16.5
  • 14. 14 | Interim Report · 1st quarter 2009 Corporate and Other The segment Corporate and Other includes corporate overhead costs incurred by Group holding companies, financial result, taxes and other items that are not allocated to specific divisions. Risk Report All issues concerning business-related risks, financial risks, legal risks, human resources risks, information technology risks and environmental and safety risks – as previously stated in the 2008 Annual Report – remain valid in the current reporting period. Therefore, no issues have been identified that pose a risk to the continued existence of the Merck Group. Corporate and Other | Key figures € million 1st quarter 2009 1st quarter 2008 Change in %  Total revenues – 6.5 – Gross margin – –0.1 – RD 0.4 0.0 – Operating result –22.6 –15.7 44.2 Exceptional items – – – Free cash flow (FCF) –84.7 –100.7 –15.9 Free cash flow adjusted for acquisitions and disposals –84.7 –47.0 80.3
  • 15. Interim Management Report of the Merck Group as of March 31, 2009 15 14 Corporate and Other 14 Risk Report 15 Report on Expected Developments 3 At a glance | Highlights 4 Merck Group 7 Merck shares 8 Business sectors 9 Merck Serono 11 Consumer Health Care 12 Liquid Crystals 13 Performance Life Science Chemicals Report on Expected Developments The world is currently in the midst of the worst recession since the Great Depression. Many economists, financial experts and heads of state are predicting the recession will continue at least throughout 2009 with a gradual improvement occurring sometime thereafter. Merck, as a financially conservative company with a long-term strategy to diversify risk with a focus on innovation in two different industries – Pharmaceuticals and Chemicals – expects to weather this storm. While Merck’s Pharmaceuticals business sector remains strong, the economic ­slowdown is having a considerable negative impact on the Chemicals business sector. Therefore, Merck’s 2009 guidance for its four divisions is as follows: Total revenues: Merck Serono +6% to 9%, Consumer Health Care +5% to 9%, Liquid Crystals –20% to –30%, and Performance Life Science Chemicals unchanged. Core ROS: (operating result/total revenues excluding amortization and integration costs) Merck Serono 20% to 25%, Consumer Health Care 5% to 10%, Liquid Crystals 20% to 30% and Performance Life Science Chemicals 5% to 10%. The operating result for the segment Corporate and Other should be similar to the ­previous year. Thus, Merck expects the Group’s total revenues for 2009 will have a growth rate in the range of 0% to 5%. The Group’s Core ROS is expected to be between 15% and 20%.
  • 16. 16 | Interim Report · 1st quarter 2009 Interim Consolidated Financial Statements as of March 31, 2009 Income Statement € million 1st quarter 2009 1st quarter 2008 Change in % Sales 1,756.9 1,783.7 –1.5 Royalty income 97.2 74.0 31.3 Total revenues 1,854.1 1,857.7 –0.2 Cost of sales –456.7 –451.2 1.2 Gross margin 1,397.4 1,406.5 –0.6 Marketing and selling expenses –546.9 –477.8 14.4 Administration expenses –106.9 –107.9 –0.9 Other operating income and expenses –85.2 –33.0 158.2 Research and development –312.9 –287.5 8.8 Amortization of intangible assets –147.5 –140.6 4.9 Investment result – – – Operating result 198.1 359.6 –44.9 Exceptional items –68.8 – – Earnings before interest and tax (EBIT) 129.3 359.6 –64.0 Financial result –35.0 –30.6 14.4 Profit before tax 94.4 329.1 –71.3 Income tax –34.1 –86.9 –60.7 Profit after tax from continuing operations 60.2 242.2 –75.1 Profit after tax from discontinued operations – 0.8 – Profit after tax 60.2 243.0 –75.2 Minority interest –3.6 –3.9 –9.1 Net profit after minority interest 56.7 239.1 –76.3 Earnings per share from continuing operations (in €) basic 0.26 1.10 –76.4 diluted 0.26 1.10 –76.4 Earnings per share from continuing and discontinued operations (in €) basic 0.26 1.10 –76.4 diluted 0.26 1.10 –76.4
  • 17. Interim Consolidated Financial Statements as of March 31, 2009 17 16 Income Statement 17 Balance Sheet 18 Segment Reporting 20 Cash Flow Statement 21 Free Cash Flow 21 Statement of Comprehensive Income 21 Statement of Changes in Net Equity including Minority Interest 22 Notes to the Interim Consolidated Financial Statements Balance Sheet € million March 31, 2009 December 31, 2008 Change in  % Current assets Cash and cash equivalents 1,342.8 692.7 93.9 Marketable securities and financial assets 358.3 176.8 102.6 Trade accounts receivable 1,707.8 1,659.4 2.9 Inventories 1,463.9 1,407.4 4.0 Other current assets 378.3 283.4 33.5 Tax receivables 87.2 139.1 –37.3 5,338.3 4,358.8 22.5 Non-current assets Intangible assets 7,956.4 8,203.4 –3.0 Property, plant and equipment 2,444.8 2,440.1 0.2 Investments at equity 1.5 1.3 14.8 Non-current financial assets 106.2 97.4 9.0 Other non-current assets 61.8 63.7 –3.0 Deferred tax assets 508.4 480.1 5.9 11,079.1 11,286.0 –1.8 Total assets 16,417.4 15,644.7 4.9 Current liabilities Current financial liabilities 228.1 266.2 –14.3 Trade accounts payable 821.4 843.7 –2.6 Other current liabilities 759.6 694.1 9.4 Tax liabilities 352.7 347.2 1.6 Current provisions 298.3 227.1 31.4 2,460.2 2,378.4 3.4 Non-current liabilities Non-current financial liabilities 1,831.4 1,080.1 69.6 Other non-current liabilities 18.2 19.5 –6.9 Non-current provisions 589.5 563.4 4.6 Provisions for pensions and other post-employment benefits 1,151.9 1,144.0 0.7 Deferred tax liabilities 851.0 896.2 –5.0 4,441.9 3,703.3 19.9 Net equity Equity capital 565.2 565.2 0.0 Reserves 8,890.5 8,940.2 –0.6 Minority interest 59.5 57.6 3.3 9,515.3 9,563.0 –0.5 Total liabilities and stockholders’ equity 16,417.4 15,644.7 4.9
  • 18. 18 | Interim Report · 1st quarter 2009 Segment Reporting * in 2008 including discontinued operations Merck Serono Consumer Health Care Pharmaceuticals € million 1st quarter 2009 1st quarter 2008 Change in % 1st quarter 2009 1st quarter 2008 Change in % 1st quarter 2009 1st quarter 2008 Change in % Sales 1,218.5 1,114.2 9.4 107.4 110.3 –2.6 1,326.0 1,224.5 8.3 Royalty income 92.1 67.5 36.6 0.1 0.5 –83.4 92.2 68.0 35.7 Total revenues 1,310.7 1,181.7 10.9 107.5 110.8 –2.9 1,418.2 1,292.5 9.7 Gross margin 1,122.2 1,005.7 11.6 73.4 74.1 –0.9 1,195.6 1,079.8 10.7 Selling and administration –474.8 –416.8 13.9 –59.4 –57.9 2.6 –534.2 –474.7 12.5 Other operating income and expenses –54.8 –19.7 178.1 –1.0 9.0 – –55.8 –10.7 419.4 Research and development –271.9 –249.2 9.1 –4.3 –3.6 20.8 –276.2 –252.8 9.3 Operating result 175.7 181.3 –3.1 7.9 21.1 –62.7 183.6 202.4 –9.3 Exceptional items –70.0 – – – – – –70.0 – – Earnings before interest and tax (EBIT) 105.7 181.3 –41.7 7.9 21.1 –62.7 113.6 202.4 –43.9 Net operating assets 10,205.7 10,214.5 –0.1 332.5 271.2 22.6 10,538.2 10,485.7 0.5 Capital spending on property, plant and equipment 51.2 30.3 68.9 3.3 1.5 120.4 54.5 31.8 71.4 Net cash flows from operating activities 301.1 224.9 33.9 6.8 24.9 –72.7 307.9 249.8 23.3 Net cash flows from investing activities –73.7 –63.6 15.9 –3.6 7.8 – –77.4 –55.8 38.8 Free cash flow* 227.4 161.2 41.0 3.2 32.8 –90.4 230.5 194.0 18.8 Discontinued Operations (Generics) Reversal Discontinued Operations (Generics) Group/Continuing Operations € million 1st quarter 2009 1st quarter 2008 Change in % 1st quarter 2009 1st quarter 2008 Change in % 1st quarter 2009 1st quarter 2008 Change in % Sales – 9.6 – – –9.6 – 1,756.9 1,783.7 –1.5 Royalty income – – – – – – 97.2 74.0 31.3 Total revenues – 9.6 – – –9.6 – 1,854.1 1,857.7 –0.2 Gross margin – 3.7 – – –3.7 – 1,397.4 1,406.5 –0.6 Selling and administration – –2.4 – – 2.4 – –653.7 –585.7 11.6 Other operating income and expenses – 0.0 – – 0.0 – –85.2 –33.0 158.2 Research and development – –0.3 – – 0.3 – –312.9 –287.5 8.8 Operating result – 0.8 – – –0.8 – 198.1 359.6 –44.9 Exceptional items – – – – – – –68.8 – – Earnings before interest and tax (EBIT) – 0.8 – – –0.8 – 129.3 359.6 –64.0 Net operating assets – 21.7 – – –21.7 – 12,659.3 12,493.1 1.3 Capital spending on property, plant and equipment – 0.1 – – –0.1 – 89.0 53.7 65.8 Net cash flows from operating activities – –1.6 – – 1.6 – 282.7 310.2 –8.9 Net cash flows from investing activities – –0.1 – – 0.1 – –366.4 399.7 – Free cash flow* – –1.7 – – 1.7 – 164.0 212.5 –22.8
  • 19. Interim Consolidated Financial Statements as of March 31, 2009 19 16 Income Statement 17 Balance Sheet 18 Segment Reporting 20 Cash Flow Statement 21 Free Cash Flow 21 Statement of Comprehensive Income 21 Statement of Changes in Net Equity including Minority Interest 22 Notes to the Interim Consolidated Financial Statements Liquid Crystals Performance Life Science Chemicals Chemicals Corporate and Other 1st quarter 2009 1st quarter 2008 Change in % 1st quarter 2009 1st quarter 2008 Change in % 1st quarter 2009 1st quarter 2008 Change in % 1st quarter 2009 1st quarter 2008 Change in % 128.0 229.1 –44.1 302.9 323.6 –6.4 431.0 552.7 –22.0 – 6.5 – 3.2 4.8 –32.8 1.7 1.3 38.1 5.0 6.0 –17.9 – – – 131.2 233.9 –43.9 304.7 324.9 –6.2 435.9 558.7 –22.0 – 6.5 – 55.7 154.5 –64.0 146.1 172.3 –15.2 201.8 326.8 –38.3 – –0.1 – –11.2 –10.0 12.5 –93.9 –88.1 6.7 –105.2 –98.0 7.3 –14.4 –13.0 10.8 –8.5 –3.2 169.2 –13.0 –16.4 –20.8 –21.5 –19.6 10.0 –7.8 –2.7 195.1 –22.2 –20.9 6.3 –14.0 –13.9 1.1 –36.3 –34.8 4.2 –0.4 0.0 – 12.7 119.5 –89.4 24.5 53.5 –54.2 37.2 173.0 –78.5 –22.6 –15.7 44.2 – – – 1.2 – – 1.2 – – – – – 12.7 119.5 –89.4 25.7 53.5 –52.0 38.4 173.0 –77.8 –22.6 –15.7 44.2 943.6 907.2 4.0 1,165.2 1,081.8 7.7 2,108.8 1,989.0 6.0 12.2 18.4 –33.5 14.9 8.9 67.1 19.6 12.9 52.1 34.5 21.8 58.3 0.0 0.1 –58.0 41.7 128.6 –67.6 14.9 20.2 –26.2 56.6 148.8 –62.0 –81.8 –88.4 –7.5 –16.3 –9.3 75.9 –22.1 –20.3 8.8 –38.4 –29.6 29.9 –250.6 485.0 – 25.3 119.3 –78.8 –7.2 –0.1 – 18.2 119.2 –84.7 –84.7 –100.7 –15.9
  • 20. 20 | Interim Report · 1st quarter 2009 Cash Flow Statement € million 1st quarter 2009 1st quarter 2008 Profit after tax 60.2 243.0 Depreciation/amortization and impairment losses (non-current assets) 223.4 223.2 Changes in inventories –56.3 –84.4 Changes in trade accounts receivable –35.6 –172.4 Changes in trade accounts payable –31.0 95.2 Changes in provisions 92.9 –22.2 Changes in other assets and liabilities 25.2 38.9 Gains/Losses on disposal of assets 1.4 –10.2 Other non-cash income and expenses 2.5 –2.8 Net cash flows from operating activities 282.7 308.5 thereof: Discontinued Operations 0.0 –1.6 Purchase of intangible assets –27.0 –33.5 Purchase of property, plant and equipment –89.0 –53.8 Acquisitions and investments in other financial assets –8.3 –12.8 Disposal of non-current assets 3.9 14.1 Changes in securities 1.8 –11.7 Changes in other financial investments –247.8 497.3 Net cash flows from investing activities –366.4 399.6 thereof: Discontinued Operations – –0.1 Dividends payments –2.1 –208.3 Capital increase including amounts due to stock option plans – 0.3 Profit transfers to E. Merck KG and changes in reserves 28.7 –19.3 Bonds issued 746,0 – Changes in liabilities to E. Merck KG –42.0 –29.4 Changes in current and non-current financial liabilities 0.3 –64.5 Net cash flows from financing activities 730.8 –321.2 thereof: Discontinued Operations – – Changes in cash and cash equivalents 647.0 386.9 Changes in cash and cash equivalents due to currency translation 3.1 –13.8 Cash and cash equivalents as of January 1 692.7 426.6 Cash and cash equivalents as of March 31 1,342.8 799.7
  • 21. Interim Consolidated Financial Statements as of March 31, 2009 21 20 Cash Flow Statement 21 Free Cash Flow 21 Statement of Comprehensive Income 16 Income Statement 17 Balance Sheet 18 Segment Reporting 21 Statement of Changes in Net Equity including Minority Interest 22 Notes to the Interim Consolidated Financial Statements Free Cash Flow € million 1st quarter 2009 1st quarter 2008 Net cash flows from operating activities 282.7 308.5 Purchase of intangible assets –27.0 –33.5 Purchase of property, plant and equipment –89.0 –53.8 Acquisitions and investments in other financial assets –8.3 –12.8 Disposal of non-current assets 3.9 14.1 Changes in securities 1.8 –11.7 Free cash flow 164.0 210.8 thereof: Discontinued Operations 0.0 –1.7 Free cash flow before acquisitions and divestments 164.0 271.4 Statement of Comprehensive Income 1st quarter 2009 1st quarter 2008 € million Before tax amount Tax expense/ benefit Net- of-tax amount Before tax amount Tax expense/ benefit Net- of-tax amount Profit 94.4 –34.1 60.2 329.9* –86.9 243.0 Gains/losses arising on remeasuring available for sale financial assets 0.0 0.0 0.0 –11.8 0.0 –11.8 Effective portion of gains/losses on hedging instruments in a cash flow hedge –8.0 –0.7 –8.7 20.0 0.0 20.0 Actuarial gains/losses from defined benefit pension commitments and similar obligations – – – – – – Exchange differences on translating foreign operations –126.0 0.0 –126.0 264.4 0.0 264.4 Other Comprehensive Income –134.0 –0.7 –134.7 272.6 0.0 272.6 Comprehensive income –39.6 –34.8 –74.5 602.5 –86.9 515.6 of which attributable to shareholders of the Group –78.6 515.0 of which attributable to minority interest 4.1 0.6 * thereof € 0.8 million profit before tax from discontinued operations Statement of Changes in Net Equity including Minority Interest € million 2009 2008 Balance as of January 1 9,563.0 8,687.6 Profit after tax 60.2 243.0 Dividend payments –2.1 –208.3 Profit transfers to/from E. Merck KG including transfers to reserves 28.7 –19.3 Capital increase – 0.2 Other comprehensive income –134.7 272.6 Changes in companies consolidated/Other 0.2 0.4 Balance as of March 31 9,515.3 8,976.2
  • 22. 22 | Interim Report · 1st quarter 2009 Notes to the Interim Consolidated Financial Statements Accounting policies The unaudited interim consolidated financial statements of the Merck Group dated March 31, 2009 comply with IAS 34. They have been prepared in accordance with the International Financial Reporting Standards (IFRS) in force on the reporting date and adopted by the European Union. The notes to the consolidated financial statements of the Merck Group for 2008, particularly the accounting policies, thus apply accordingly. Companies consolidated The consolidated financial statements of the Merck Group have been prepared with Merck KGaA as the parent company. As of March 31, 2009, a total of 180 companies were fully consolidated. Notes to the financial position and results of operations In the first quarter of 2009, total revenues of the Merck Group amounted to € 1,854 mil- lion, slightly less than in the year-earlier period (-0.2%). Organically – meaning adjusted for the impact of currency as well as acquisitions and disposals – there was a decrease of 0.6%. Development in the two business sectors differed greatly. While total reve- nues of Pharmaceuticals increased again also in the first quarter (+ 9.7%), Chemicals recorded a decline of 22.0%, which was mainly caused by the business development in Liquid ­Crystals. At –0.6%, the Group’s gross margin fell slightly below total revenue growth. Marketing and selling expenses increased by 14.4%, and research and develop- ment spending rose by 8.8% over the year-earlier period. Administration expenses devel- oped favorably and were even slightly below the previous year’s level. With the increase in other operating expenses, it must be taken into account that the year-earlier period included one-off income in connection with business disposals and resulting from the release of provisions. The operating result totaled € 198 million, which corresponds to a decline of 44.9%. Exceptional items of € –69 million were booked in the first quarter. After the European Medicines Agency (EMEA) recommended the suspension of the marketing authoriza- tion for Raptiva®, we included costs of € 70 million for discontinuing the product. Excep- tional items include, to a small extent, an adjustment for previous exceptionals. With a net expense of € 35 million, the financial result of the first quarter of 2009 was 14.4% higher than the previous year. The tax rate (before exceptional items) was 24.7% com- pared with 26.4% in the previous year. The total assets of the Merck Group amounted to € 16,417 million as of the balance sheet date. This corresponds to an increase of € 773 million, or 4.9%, as compared with December 31, 2008. This increase relates mainly to cash inflows from issuing a bond. On March 20, 2009, under the debt issuance program a euro benchmark bond with a maturity of 4.5 years was launched in the European debt capital market via Merck Financial Services GmbH, Darmstadt. The bond issue volume was € 750 million. The bond pays a coupon of 4.875% and was issued at a price of 99.697%. The bond was ­valued at acquisition costs taking into account disagios and transaction costs.
  • 23. Interim Consolidated Financial Statements as of March 31, 2009 23 21 Statement of Changes in Net Equity including Minority Interest 22 Notes to the Interim Consolidated Financial Statements 16 Income Statement 17 Balance Sheet 18 Segment Reporting 20 Cash Flow Statement 21 Free Cash Flow 21 Statement of Comprehensive Income The equity ratio declined from 61.1% to 58.0%. As of March 31, 2009, net debt amounted to € 358 million, as compared with € 477 million as of December 31, 2008. At 0.16 (previous year: 0.17) gearing (ratio of net debt and pension provisions to net equity) remained at a very low level. In the first quarter of 2009, free cash flow adjusted for acquisitions and ­disposals amounted to € 164 million, compared with € 271 million in the previous year. This decrease was due to weaker business development and to higher spending on property, plant and equipment and intangible assets. Related party disclosures As of March 31, 2009, there were liabilities by Merck KGaA and Merck Cie, Altdorf, to E. Merck KG in the amount of € 317 million. In addition, as of March 31, 2009, Merck KGaA was owed receivables of € 44 million by E. Merck KG. The balances result mainly from the profit transfers by Merck Cie to E. Merck KG as well as the recipro- cal profit transfers between Merck KGaA and E. Merck KG. They include financial pay- ables of € 105 million, which are subject to standard market interest rates. From January to March 2009, Merck KGaA and Merck Shared Services Europe GmbH performed ser- vices for E. Merck KG with a value of € 0.3 million, for E. Merck Beteiligungen KG and for Emanuel Merck Vermögens KG with a value of less than € 0.1 million each. From January to March 2009, the companies of the Merck Group supplied goods with a value of € 0.1 million to associates.
  • 24. 24 | Interim Report · 1st quarter 2009 Responsibility Statement To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the interim consolidated financial statements of the Merck Group give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the interim management report of the Group includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group for the remaining months of the financial year. Darmstadt, April 27, 2009 Karl-Ludwig Kley Michael Becker Bernd Reckmann Elmar Schnee
  • 25. 25Responsibility statement | Executive board | supervisory Board | Capital structure Executive Board of Merck KGaA Dr. Karl-Ludwig Kley, Chairman Dr. Michael Becker | Dr. Bernd Reckmann | Elmar Schnee Supervisory Board of Merck KGaA Prof. Dr. Wilhelm Simson, Chairman Heiner Wilhelm*, Vice Chairman Dr. Mechthild Auge*2) | Johannes Baillou | Frank Binder | Dr. Daniele Bruns*1) | Judith Delp*1) Claudia Flauaus* | Michael Fletterich* | Edeltraud Glänzer* | Michaela Freifrau von Glenck Frieder Kaufmann* | Prof. Dr. Dr. h.c. Rolf Krebs | Albrecht Merck | Dr. Arend Oetker Dr. Karl-Heinz Scheider*2) | Prof. Dr. Theo Siegert | Osman Ulusoy* * Employee representative 1)until March 25, 2009 2) as of March 25, 2009 Capital structure of Merck KGaA as of March 31, 2009 (for more information, please see the Annual Report for 2008, p. 65 et seq.) Total capital Merck KGaA € 565,211,241.95 Equity interest € 397,196,314.35 Share capital € 168,014,927.60 General partner E. Merck KG (with equity interest) Limited liability shareholders Supervisory Board 16 members (Sections 1,7 MitbestG)** General partners with no equity interest (with power of management and representation) = Executive Board Merck KGaA Annual General Meeting Board of Partners E. Merck KG; 9 members Human Resources Committee, Finance Committee, RD Committee ** German Co-Determination Act
  • 26. 26 | Interim Report · 1st quarter 2009 Financial calendar 2009 Interim Report 2nd quarter Friday, July 24 Autumn press conference Interim Report 3rd quarter Monday, October 26 Publication contributors Published on April 27, 2009 by Merck KGaA Corporate Communications, Frankfurter Str. 250, 64293 Darmstadt, Germany Fax: +49-6151-72 55 77, e-mail: corpcom@merck.de, Web site: www.merck.de Design: XEO GmbH, Düsseldorf, Germany Typesetting: typowerkstatt Dickerhof Schwarz, Darmstadt, Germany Photographs: Marco Moog, Hamburg, Germany Printing: Frotscher Druck GmbH, Darmstadt, Germany
  • 27. W840530 070409 Merck offers a wide range of specialty chemicals for techno- logically sophisticated applications. Many of these are con- tained in products that people encounter in everyday life, such as mobile phones, televisions, automotive coatings, drugs and cosmetics. Top quality, diversity as well as a customer-centric approach to research and product development along with extensive service characterize our Chemicals business. Liquid Crystals division Close cooperation in development and production of liquid crystals (LC) with the world’s leading display manufacturers has made Merck the global leader in this market. Modern life would be hard to imagine without LC displays. Merck is tech- nology leader and continually invests in research for these and new technologies, e.g. OLEDs (organic light-emitting diodes) or chemicals for energy-efficient lighting. Performance Life Science Chemicals division Our specialty chemicals and our expertise in application technologies, quality assurance and approval processes have made us a successful supplier in key markets, in particular the food, optics, plastics, coatings, printing, cosmetics and pharmaceutical industries. Products and services from Merck are used throughout the entire process chain, from analysis, research and development, through to production. Our port- folio includes, for example, effect pigments, cosmetic actives, reagents and test kits. Chemicals business sectorPharmaceuticals business sector Merck develops, manufactures and markets innovative prescrip- tion drugs as well as over-the-counter products. We develop therapies for high unmet medical needs. Through their targeted effect, these help patients to live a longer and better life. Our over-the-counter products help prevent disease and relieve minor complaints. Merck Serono division The product portfolio of this division includes leading prescrip- tion drugs such as the cancer drug Erbitux® and the ­multiple sclerosis treatment Rebif®. In addition, we offer therapies to treat infertility, growth disorders and cardiovascular or meta- bolic diseases – indications mainly treated by specialists. Our research activities focus on Oncology, Neurodegenerative Diseases, Fertility, Autoimmune and Inflam­ma­tory Diseases, and Endocrinology. Consumer Health Care division Many consumers trust a wide range of well-known over-the- counter brands that Merck develops, manufactures and markets in its Consumer Health Care division. The portfolio ranges from products for everyday health such as Bion®3, or Femibion®, which is specially for women, classic cold remedies such as the well-known brand Nasivin®, to products that strengthen the joints such as Seven Seas® JointCare and Kytta®.
  • 28. www.merck.de

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