CHAPTER 1 ABOUT THIS PROFILE 2
Executive summary 2
Quarterly news update 2
Company introduction 2
Company sales 2
Company financials 2
Key products and competitors 3
Data sourcing 3
Sales data 3
Analyst consensus 3
CHAPTER 2 EXECUTIVE SUMMARY 4
Key findings 4
Prescription pharmaceutical sales performance, 2001-13 5
Financial performance, 2001-13 6
Merck KGaA: PharmaVitae forecasts at a glance 7
Strategic insight 8
Erbitux and Serono acquisition rejuvenate branded Rx pharma business... 8
...and diversify Merck KGaA's portfolio to improve long-term prospects 9
From pure-play small molecule company to biopharmaceutical 10
Expansion into CNS and oncology 11
Breaking into the US 12
A 'younger' product portfolio 13
Re-structuring bolsters financial performance 14
SWOT analysis 17
Strengths 17
Growth prospects of Erbitux 17
Broad portfolio supported by pipeline 18
Continued sales growth from off-patent products 18
Weaknesses 18
Over reliance on Erbitux to drive growth 18
Opportunities 19
Expansion of oncology portfolio through continued growth of Erbitux and development of pipeline candidates 19
Continued improvement of operating profit margin 19
Use high revenues to pursue licensing deals to further bolster portfolio 20
Pursue M&A opportunities to build consumer health and life sciences businesses 20
Threats 20
Increasing competition from biosimilars is affecting the growth prospects of Merck KGaA's therapeutic protein franchise 20
CHAPTER 3 QUARTERLY NEWS UPDATE 25
Product developments 25
Deals and alliances 25
Product deals 25
Technology deals 27
M&A activity 28
Company announcements 29
Future product milestones 30
CHAPTER 4 COMPANY INTRODUCTION 31
Key findings 31
Background 32
Key corporate developments 32
M&A history 33
Merck-Serono Biopharmaceuticals 33
Divestment of generics business 33
Streamlined focus 34
Current corporate structure 34
Pharmaceuticals 35
Branded prescription pharmaceuticals 35
Consumer health 35
Chemicals 36
Performance & life science chemicals 36
Liquid crystals 36
Pharmaceuticals business unit structure 37
CHAPTER 5 COMPANY SALES 38
Key findings 38
Prescription pharmaceutical sales and growth rate analysis, 2001-13 40
Product analysis 42
Product analysis, 2001-07 42
Product analysis, 2007-13 45
Therapy area analysis 48
Therapy area analysis, 2001-07 49
Therapy area analysis, 2007-13 51
Therapy area focus, 2001-13 53
Geographic analysis 55
Geographic analysis, 2001-07 56
Geographic analysis, 2007-13 58
Geographic focus, 2001-13 60
Launch/core/expiry analysis 61
Explanation of launch/core/expiry analysis 61
Launch analysis, 2007-13 62
Core analysis, 2007-13 63
Expiry analysis, 2007-13 64
Launch/core/expiry configuration, 2007-13 65
Molecule type analysis 67
Molecule type analysis, 2001-07 68
Molecule type analysis, 2007-13 69
Externalization analysis 71
Externalization analysis, 2001-07 72
Externalization analysis, 2007-13 73
CHAPTER 6 COMPANY FINANCIALS 75
Key findings 75
Reconciliation between PharmaVitae-formatted prescription pharma sales and company-reported total sales, 2001-07 76
Financial statements, 2001-07 78
Profit and loss account, 2001-07 78
Balance sheet, 2001-07 80
Operating costs and profit analysis 82
Operating costs and profit analysis, 2001-07 83
Operating cost ratio and profit margin analysis, 2001-07 84
Operating cost ratio and profit margin analysis, 2007-13 85
Operating costs and profit analysis, 2007-13 87
Return on capital employed analysis 89
Capital employed analysis, 2001-07 90
Return on capital employed (RoCE) analysis, 2001-07 92
Market capitalization analysis 95
Market capitalization analysis, 2001-07 95
Total shareholder returns analysis, 2001-07 96
CHAPTER 7 KEY PRODUCTS AND COMPETITORS 98
Key findings 98
Overview 99
CNS 100
Rebif 100
Overview 100
Sales forecast 101
Mylinax 105
Overview 105
Sales forecast 106
safinamide 109
Overview 109
Sales forecast 110
Oncology 113
Erbitux 113
Overview 113
Sales forecast 114
Cardiovascular 116
Concor & Concor-Plus 116
Overview 116
Sales forecast 117
Kuvan 118
Overview 118
Sales forecast 119
Urology & gender-specific health 120
Gonal-F 120
Overview 120
Sales forecast 121
Endocrine, metabolic and genetic disorders 124
Glucophage & Glucovance 124
Overview 124
Sales forecast 125
CHAPTER 8 APPENDIX 126
R&D pipeline 126
References 127
Papers 127
Company releases 127
Datamonitor reports 127
News articles 128
Abbreviations 128
Exchange rates 129
List of Tables
Table 1: Merck KGaA - PharmaVitae forecasts at a glance 7
Table 2: Merck KGaA key product developments, Q1-Q2 2008 25
Table 3: Merck KGaA product deals and alliances, Q1-Q2 2008 25
Table 4: Merck KGaA technology deals and alliances, Q1-Q2 2008 27
Table 5: Merck KGaA M&A activity, Q1-Q2 2008 28
Table 6: Merck KGaA company announcements, Q1-Q2 2008 29
Table 7: Merck KGaA future product milestones, 2008-10 30
Table 8: Merck KGaA, product portfolio overview ($m), 2001-07 42
Table 9: Merck KGaA, product portfolio overview ($m), 2007-13 45
Table 10: Merck KGaA, therapy portfolio overview ($m), 2001-07 49
Table 11: Merck KGaA, therapy portfolio overview ($m), 2007-13 51
Table 12: Merck KGaA, portfolio overview by geographic region ($m), 2001-07 56
Table 13: Merck KGaA portfolio overview by geographic region ($m), 2007-13 58
Table 14: Merck KGaA launch portfolio overview ($m), 2007-13 62
Table 15: Merck KGaA core portfolio overview ($m), 2007-13 63
Table 16: Merck KGaA expiry portfolio overview ($m), 2007-13 64
Table 17: Merck KGaA portfolio overview by molecule type ($m), 2001-07 68
Table 18: Merck KGaA product portfolio overview by molecule type ($m), 2007-13 69
Table 19: Merck KGaA product portfolio overview by source ($m), 2001-07 72
Table 20: Merck KGaA product portfolio overview by source ($m), 2007-13 73
Table 21: Total Merck KGaA sales by business unit ($m), 2001-07 76
Table 22: Merck KGaA profit and loss account ($m), 2001-07 78
Table 23: Merck KGaA balance sheet ($m), 2001-07 80
Table 24: Merck KGaA operating revenue/cost analysis ($m), 2001-07 83
Table 25: Merck KGaA operating cost ratio analysis (% of total revenues), 2001-07 84
Table 26: Merck KGaA operating cost ratio analysis (% of total revenues), 2007-13 85
Table 27: Merck KGaA operating revenue/cost analysis ($m), 2007-13 87
Table 28: Merck KGaA capital employed ($m), 2001-07 90
Table 29: Merck KGaA EBIT return on capital employed ($m), 2001-07 92
Table 30: Merck KGaA EBIT pre-tax return/capital employed driver analysis (%), 2001-07 93
Table 31: Merck KGaA market capitalization ($ billion), 2001-07 95
Table 32: Merck KGaA total shareholder returns (annual %), 2001-07 96
Table 33: Key products overview 99
Table 34: Rebif: overview 100
Table 35: Rebif: sales forecast ($m), 2007-13 101
Table 36: Mylinax: overview 105
Table 37: Mylinax: sales forecast ($m), 2007-13 106
Table 38: safinamide: overview 109
Table 39: safinamide: sales forecast ($m), 2007-13 110
Table 40: Erbitux: overview 113
Table 41: Erbitux: sales forecast ($m), 2007-13 114
Table 42: Concor & Concor-Plus: overview 116
Table 43: Concor & Concor-Plus: sales forecast ($m), 2007-13 117
Table 44: Kuvan: overview 118
Table 45: Kuvan: sales forecast ($m), 2007-13 119
Table 46: Gonal-F: overview 120
Table 47: Gonal-F: sales forecast ($m), 2007-13 121
Table 48: Glucophage & Glucovance: overview 124
Table 49: Glucophage & Glucovance: sales forecast ($m), 2007-13 125
Table 50: Merck KGaA's R&D pipeline (Phase I-registration) 126
Table 51: Exchange rates, 2007 129
List of Figures
Figure 1: Merck KGaA prescription pharmaceutical performance, sales ($m) and growth rate (%), 2001-13 5
Figure 2: Merck KGaA's financial performance ($m), 2001-13 6
Figure 3: Merck KGaA's externalization, growth drivers ($m), 2001-13 9
Figure 4: Merck KGaA's biologics focus (percentage of branded ethical sales), 2001, 2006 and 2007 10
Figure 5: Merck KGaA's therapeutic focus (percentage of branded ethical sales), 2001, 2006 and 2007 11
Figure 6: Merck KGaA's geographic focus (percentage of branded ethical sales), 2001, 2006 and 2007 12
Figure 7: Merck KGaA's age of products (percentage of branded ethical sales), 2001, 2006 and 2007 13
Figure 8: Merck KGaA's restructuring and its effects on operating margins, 2001-08e 15
Figure 9: Merck KGaA SWOT analysis 17
Figure 10: Current corporate structure 34
Figure 11: Merck KGaA, business unit focus (% total sales), 2001-07 35
Figure 12: Merck KGaA, pharmaceuticals business units sales ($m), 2001-08e 37
Figure 13: Merck KGaA prescription pharmaceutical performance, sales ($m) and growth rate (%), 2001-13 40
Figure 14: Merck KGaA key sales growth driver & resistors ($m), 2001-07 43
Figure 15: Merck KGaA key sales growth drivers & resistors ($m), 2007-13 46
Figure 16: Merck KGaA prescription pharmaceutical sales by therapy area ($m), 2001-13 48
Figure 17: Merck KGaA prescription pharma sales by therapy area (% of total), 2001-13 53
Figure 18: Merck KGaA prescription pharmaceutical sales by geographic region ($m), 2001-13 55
Figure 19: Merck KGaA growth drivers and resistors by geographic region ($m), 2001-07 56
Figure 20: Merck KGaA drivers and resistors by geographic region ($m), 2007-13 58
Figure 21: Merck KGaA prescription pharmaceutical sales by geographic region (% of total), 2001-13 60
Figure 22: Merck KGaA launch/core/expiry configuration ($m), 2007-13 65
Figure 23: Merck KGaA prescription pharmaceutical sales by molecule type ($m), 2001-13 67
Figure 24: Merck KGaA growth drivers and resistors by molecule type ($m), 2007-13 70
Figure 25: Merck KGaA prescription pharmaceutical sales by source ($m), 2001-13 71
Figure 26: Merck KGaA growth drivers and resistors by source ($m), 2001-07 72
Figure 27: Merck KGaA growth drivers and resistors by source ($m), 2007-13 74
Figure 28: Merck KGaA operating revenue/cost analysis ($m), 2001-13 82
Figure 29: Merck KGaA operating cost ratio analysis (% of total revenues), 2001-13 86
Figure 30: Merck KGaA return on capital employed, EBIT margin and capital turnover, 2001-07 89
Figure 31: Return on capital employed formula 93
Figure 32: Merck KGaA market capitalization ($ billion), 2001-07 96
Figure 33: Merck KGaA total shareholder returns vs. S&P 500 ($m), 2001-07 97
Figure 34: Multiple sclerosis market position of the leading four disease-modifying therapies across the seven major markets, 2007 102