The Pharmaceuticals business sector, comprising the Merck Serono and Consumer Health Care divisions, generated an 11% increase in total revenues to € 5,428 million. The majority of this increase is due to higher sales of the drugs Rebif® und Erbitux®. Royalty income grew by 25% to € 339 million. The operating result increased by 57% to € 655 million. The business sector thus generated 54% of the total operating result*. In 2007, the business sector accounted for 40% of the Group operating result*. Return on sales for the Pharmaceuticals business sector rose to 12.1% compared with 8.5% in 2007.
Pharmaceuticals | Total revenues by division |
Pharmaceuticals | Operating result by division |
Total revenues of the Merck Serono division increased by 12% to € 4,987 million and the operating result rose to € 594 million. The 66% increase in the operating result was due to the good development of business and to the absence of high, one-time restructuring and integration expenses for Serono in 2007.
The division increased its R&D spending by 22%. The research ratio of 22% was two percentage points higher than in 2007. At € 565 million, the high level of expenses due to the amortization of intangible assets was at the previous year’s level and was due almost exclusively to the Serono purchase price allocation. Return on sales for the Merck Serono division amounted to 11.9% following 8.0% in 2007.
Total revenues of the Consumer Health Care division rose by 5.2% to € 442 million; the operating result rose by 2.9% to € 61 million compared with 2007. The proceeds of € 11 million on the sale of the biManán® brand in Spain had a positive impact on the operating result. In December, the Belgian company Bio-Fyt was acquired for € 30 million. The division maintained its return on sales of 13.9% at nearly the previous year’s level of 14.2%.
*excluding the segment Corporate and Other