In 2007, Merck markedly increased its investment in research and development (R&D) as a result of the Serono acquisition. R&D spending totaled €1,028 million. The previous year’s figures have been adjusted due to changes in the reporting structure. See Consolidated Financial Statements.

The Pharmaceuticals business sector accounted for €891 million or 87% of total research spending. At €879 million, R&D expenses of Merck Serono, a particularly research-intense division, were nearly twice as high as in 2006. The ratio of research spending to total revenues was 20%. In particular, Merck invested heavily in oncology research projects. In addition, with the integration of the former Serono, research activities were expanded to include additional therapeutic areas. Within the scope of the realignment of the research and development portfolio, Merck is reviewing its activities in diabetes (please see the Merck Serono section of the Management Report).

In the Chemicals business sector, R&D spending remained constant at €137 million. Of this amount, €79 million was attributable to the Liquid Crystals division and €58 million to the Performance & Life Science Chemicals division.