|
Merck Serono | Key figures |
XLS | ||
|
|
|
|
|
|
€ million |
2008 |
2007 |
Δ in % |
|
Total revenues |
4,987 |
4,458 |
12 |
|
Gross margin |
4,191 |
3,765 |
11 |
|
R&D |
1,074 |
879 |
22 |
|
Operating result |
594 |
357 |
66 |
|
Exceptional items |
–354 |
–744 |
–52 |
|
Free cash flow (FCF) |
554 |
–6,505 |
– |
|
FCF before acquisitions and disposals |
559 |
774 |
–28 |
|
ROS in % |
11.9 |
8.0 |
|
In 2008, the Merck Serono division generated total revenues of € 4,987 million, 12% more than in 2007. The continuous growth in sales was primarily the result of the solid increases achieved by our main products, for example the biological drugs Rebif®, Erbitux® and Gonal-f® as well as classic products such as Concor® and Glucophage®. We achieved 58% of sales, equivalent to € 2,677 million, with biological drugs. Rebif® was once again our top-selling product. Global sales of this drug for the treatment of relapsing forms of multiple sclerosis (MS) rose to € 1,331 million in 2008 – an increase of 9.3% over the previous year.
Sales of the targeted cancer therapy Erbitux® continued to grow at a strong double-digit rate, increasing by 20% to € 565 million in 2008. Apart from the approval of Erbitux® in the European Union for first-line treatment of head and neck tumors and metastatic colorectal cancer (KRAS wild-type tumors), we also expanded our presence in the key market of Japan. The approval of Erbitux® in Japan gives physicians and patients a new therapeutic option in the second- and third-line treatment of metastatic colorectal cancer. In addition, we laid the cornerstone for the expansion of our biotech production in Corsier-sur-Vevey (Switzerland) in which we will invest a total of around € 300 million. By expanding this site, we will be able to produce greater quantities of biotherapeutics, for example the oncology drug Erbitux® as well as treatments for autoimmune and inflammatory diseases.
Gross margin increased by 11% to € 4,191 million over the previous year. The operating result rose by 66% to € 594 million. This increase was due, among other things, to the conclusion of restructuring and integration measures following the acquisition of the former Serono. In addition, we increased our royalty income by 25% to € 337 million in 2008.
Return on sales (ROS) amounted to 11.9% in 2008. Nominal free cash flow was € 554 million, considerably more than in 2007, the year in which we acquired Serono. By contrast, free cash flow adjusted for acquisitions and disposals declined by 28% to € 559 million with the termination of a program to sell receivables in Italy (details can be found in Note [18] “Trade accounts receivable”).