Company Analysis - Merck Serono
A Strong Foundation
Following his purchase of a Darmstadt pharmacy in 1668, Jacob Merck's company developed into a producer of bulk pharmaceuticals, and by 2006, with over 30,000 staff worldwide, Merck KGaA's pharmaceuticals business encompassed the production of prescription drugs, generics, over the counter products and contrast media.
Merck KGaA's pharmaceuticals business encompassed the production of prescription drugs, generics, over the counter products and contrast media..Merck KGaA has a strong portfolio of launched compounds with key strength in oncology, which, despite its business strategy to broaden its therapeutic focus, still generates the greatest revenue. A significant success for Merck KGaA in the field of oncology was the launch of Erbitux (cetuximab) in 2003, a monoclonal antibody directed against the epidermal growth factor receptor, for the treatment of colorectal cancer. It is now additionally launched for head and neck cancer, as well as being in clinical trials for a number of other cancers. Other successes include cilengitide, an integrin antagonist and angiogenesis inhibitor that is currently in Phase II trials for glioblastoma. Analysis suggests that if successful, this drug will bring peak sales of $US 598 million per year.
Prior to the acquisition of Serono, Merck KGaA had a limited R&D presence in areas extending beyond its core therapeutic competencies. Two examples were: EMD-503982, an oral Factor Xa inhibitor, which is in Phase I trials for arterial and venous thrombosis, and EMD-387008, in Phase I trials for Type II diabetes. This was a limitation which it was looking to address.
