The market research institute IMS Health predicts that the global pharmaceutical market will grow by 5% to 6% in 2008 and account for a volume in the magnitude of US$ 735 billion to US$ 745 billion. According to the data, the U.S. pharmaceutical market as well as the markets of Germany, France, the United Kingdom, Italy and Spain – the so-called top five of Europe – are to grow by 4% to 5%. This would represent a historical low for the United States. For Japan, IMS Health predicts an increase of 1% to 2%. According to IMS forecasts, in 2011 oncology medicines will be the largest drug group in terms of sales. To date, they have ranked second following drugs to treat metabolic disorders.
For the Pharmaceuticals business sector, Merck expects total revenues to increase in a range between 7% and 11% and a high double-digit increase in the operating result in fiscal 2008. For 2009, the company expects further growth in total revenues and the operating result.
The Merck Serono division expects total revenues to increase in 2008 in a range between 7% and 11% and a high double-digit increase in the operating result. For 2009, the division expects further growth in both total revenues and the operating result. Merck intends to achieve a decisive competitive advantage by expanding its biotechnology business and combining this with its competence in chemistry. Merck will not only defend, but also sustainably expand its market position in biotechnology. The company will consolidate its position through targeted acquisitions and an active licensing policy. The budget for research and development will be around €1 billion, equivalent to around 20% of total revenues. The division’s development portfolio, which currently comprises more than 40 projects, focuses on Oncology, Neurodegenerative Diseases, Fertility, Autoimmune and Inflammatory Diseases, and certain areas of Endocrinology. Regionally, the focus is on expanding the businesses in the United States, Japan and China.
The business of the Consumer Health Care division will develop further organically and through acquisitions. For 2008, The division expects total revenues to show good organic growth in a range between 11% and 15% as well as the operating result to grow in the single-digit range. The Consumer Health Care division also expects to increase total revenues and the operating result in 2009. In its markets, Consumer Health Care is focusing on achieving higher brand recognition, primarily in Europe.
