Regional market developments –
Good growth in the United States Audited

With sales of € 3,374 million in 2009, or 4.2% less than in 2008, Europe remained our largest region. Despite a 1.9% decline in sales, Germany superseded France as the leading European country of the Merck Group in terms of sales. The Pharmaceuticals business sector generated the majority of its sales in Germany, which amounted to € 708 million. Nearly 20% of sales were attributable to the Chemicals business sector. Sales in France totaled € 685 million, where the Pharmaceuticals business sector accounted for the lion’s share. We recorded an overall decline of 12% in France, which was due not only to generic competition faced by Merck Serono, but also to Chemicals, mainly the Pigments business. Consumer Health Care was the only division that grew.

Merck Group | Sales by region

Merck Group – Sales by region – 5-year diagram (bar chart)

In 2009, we increased our sales in the U.S. market by 18% to € 1,075 million. The Pharmaceuticals business sector, which grew 23%, accounted for the bulk of sales. The Chemicals business sector, which accounted for around one-fifth of sales, remained stable, a good outcome for a crisis year.

In Latin America, we recorded a 17% increase in sales to € 942 million in 2009. Our key market in this region is Brazil. Sales increased in this country by 6.0%, with the Chemicals business sector remaining steady and the Pharmaceuticals business sector posting an increase of 7.0%. We also grew considerably in Colombia, Ecuador and Argentina.

In Asia, Africa and Australasia, we increased our sales by 1.8%. With sales of € 347 million, South Korea remains our largest market in this region. The majority of our sales are generated by the Chemicals business sector, primarily the Liquid Crystals business. The Pharmaceuticals business sector accounted for just under 10% of sales, which are developing positively. By contrast, the Chemicals business sector recorded a 15% decline in sales. In Taiwan, our second-largest market in this region, sales increased by 1.7% to € 337 million in 2009, difficult year for the Chemicals business sector. The Pharmaceuticals business sector grew by 9.9%, whereas the Chemicals business sector, which accounts for around 90% of sales in Taiwan, grew by 0.9%.

In Japan, where for many years Merck only operated in Chemicals, the Pharmaceuticals business sector accounted for nearly 43% of sales, which quadrupled. This development was due mainly to the market success of the oncology drug Erbitux®. This enabled us to offset the negative developments in the Chemicals business sector. Overall, sales in Japan increased by 8.2% to € 297 million.

Sales by the Chemicals business sector decreased in China by 15%, while sales by the Pharmaceuticals business sector increased by 11%. Sales in China totaled € 190 million, approximately two-thirds of which were attributable to the Pharmaceuticals business sector and one-third to the Chemicals business sector. In India, both business sectors grew, increasing sales by 7.1% to € 113 million. Chemicals and Pharmaceuticals each account for around half of sales.