Marketing and selling expenses, including those of Millipore, rose by 29% to EUR 573 million in the third quarter. Royalty and commission expenses were up 10% to EUR 116 million, again mainly as a result of higher sales of the cancer treatment Erbitux® and higher royalty income, some of which must be passed on to the patent owners. In 2010, Merck began reporting royalty and commission expenses on a separate line in the income statement. In the past, these expenses were reported under marketing and selling expenses.
Administration expenses increased by 26% to EUR 128 million in the third quarter of 2010 from EUR 102 million in the year-ago quarter due to additional administration costs from Millipore and the currency impact.
Other operating expenses and income increased by 19% to EUR –91 million, which included Millipore integration costs of EUR 21 million.
Research and development costs increased 4.7% to EUR 349 million in the third quarter of 2010. R&D spending for the Chemicals divisions, including Merck Millipore, rose but decreased for the Merck Serono division.
Amortization of intangible assets increased by 35% to EUR 198 million. This amount includes for the first time amortization of intangible assets from the Millipore purchase price allocation amounting to EUR 48 million.
back
