The Merck Millipore division comprises the activities of the former Millipore Corporation, a leading U.S.-based life science company acquired in July 2010, and the majority of Merck’s former Performance & Life Science Chemicals division. As the businesses are now fully integrated, it is not possible to provide comparable year-ago figures. Total revenues for the new division amounted to € 584 million in the second quarter and € 1,195 million in the first half of 2011.
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Merck Millipore | Key figures |
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€ million |
Q2 – 2011 |
Change |
Jan.–June |
Change |
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Total revenues |
583.7 |
138.9 |
1,195.0 |
152.1 |
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Gross margin |
329.8 |
158.5 |
686.0 |
169.6 |
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Research and development |
–31.9 |
– |
–64.5 |
– |
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Operating result |
46.3 |
– |
118.2 |
– |
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Exceptional items |
– |
– |
– |
– |
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Free cash flow |
59.1 |
179.2 |
110.5 |
171.4 |
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Underlying free cash flow |
69.1 |
226.8 |
126.9 |
211.7 |
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ROS in % |
7.9 |
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9.9 |
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The division has three business units – Bioscience representing 17% of second-quarter total revenues; Lab Solutions representing 42%; and Process Solutions representing 41%.
The Bioscience business unit focuses on helping customers in the pharmaceutical and biotechnology industries, as well as academia, understand complete biological systems and identify new therapeutic targets. It provides tools and services to support researchers in a wide variety of areas ranging from neuroscience, infectious disease, oncology, and metabolic disorders to stem cells, cell signaling, nuclear function, and chromatin biology. Bioscience products and services simplify the work flow for researchers.
Sales of the Bioscience business unit slowed in the second quarter compared to the first due to reduced orders from key academic and life science customers.
Merck Millipore | Sales by region – Q2
The Lab Solutions business unit is a leading supplier to laboratories with lab water equipment, consumables and services, microbiology and biomonitoring, test assays, organic and analytical reagents and solvents. Both Merck and Millipore had substantial expertise in this field. The Lab Solutions business unit has started to establish a global footprint to target considerable cross-selling synergies. One of its well-known products is the Duopath® Verotoxin, a simple quick test to detect EHEC (enterohemorrhagic Escherichia coli) in food, which infected hundreds of Europeans in the spring of this year.
Lab Solutions sales were nearly identical in the first and second quarters.
The Process Solutions business unit supplies products used by pharmaceutical and biotechnology companies to develop and manufacture biopharmaceutical drugs safely and efficiently. It provides fully integrated solutions to biopharmaceutical customers and an attractive range of development and regulatory services to biopharmaceutical manufacturers.
Second-quarter Process Solutions sales declined slightly from the first quarter due to the timing of key customers’ manufacturing campaigns. The business unit also saw growth reduced due to the cancellation of a contract to sell insulin for use in industrial biopharmaceutical applications.
The division booked € 46 million in the second quarter for amortization of intangible assets in connection with the purchase price allocation for Millipore. Similar amounts will be recorded every quarter for several years.
This led to a second-quarter operating result of € 46 million with an ROS (operating result/ total revenues) of 7.9%. The core operating result, which excludes Merck Millipore-related amortization of intangible assets and integration costs, was € 101 million, resulting in a core ROS of 17.3%.
For the first half of the year, the core operating result was € 232 million, resulting in a core ROS of 19.5%.
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