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Performance & Life Science Chemicals Profile Audited by KPMG

Imagepicture Performance & Life Science Chemicals (photo)

Specialty chemicals from Merck are used throughout the entire pharmaceutical production process from development in the laboratory up to industrial-scale manufacture. They ensure reliable analysis in research and dependable production processes. Expertise in chemistry and customer-centric innovations have made Merck a successful supplier to the pharmaceutical, cosmetics, food, plastics, coatings and printing industries.

Highlights of 2007

  • High sales level grows further, organic growth of 4.7%, return on sales at 11.7%
  • New global e-commerce platform developed in 2007 is scheduled for launch in 2008 to open up new distribution channels, especially in the laboratory sector
  • Strong growth in Asia and slight growth in Latin America, core European market shows stable growth
    The business model

    The success of the Performance & Life Science Chemicals division is rooted in a special promise that Heinrich Emanuel Merck gave for the purity of his products back in 1851. This made Merck the global reference standard in meeting the highest quality demands for chemicals used in research and production. Today, Merck is a preferred partner for moving from laboratory scale to industrial production – innovations from the division often help customers to achieve key competitive advantages.

    • Merck develops customized solutions for each industrial application and offers customer-centric services extending beyond products, such as special documentation for authorities and online services.
    • Merck finds innovative answers to many challenges in environmental protection, product safety and product security by utilizing cutting-edge technologies.
    Overview of the three
    business fields

    The business models and key products:

    Market trends and
    prospects for the future

    • The laboratory market is characterized by relatively stable average growth; individual biotechnology segments are showing double-digit growth.
    • Statutory regulations on production and product safety, the related process documentation and safety requirements as well as quality controls are increasing.
    • Branded goods manufacturers are increasingly moving toward high-quality colors and packaging – a trend that is benefiting the business with effect pigments.
    • Ionic liquids offer growth potential, for instance as a replacement for conventional solvents in extraction and separation.
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    Last update 18.02.2008, © Merck KGaA, Darmstadt, Germany

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