Merck Serono develops, manufactures and markets prescription drugs to treat cancer, multiple sclerosis (MS), infertility, growth disorders, and selected cardiovascular and metabolic diseases. In 2012, the division contributed 56% to Group sales and 56% to Group EBITDA pre one-time items (excluding Corporate and Other). The division was formed in 2007 by the merger of Merck’s ethical pharmaceutical business with the biopharmaceutical company Serono.
Merck Serono’s products are primarily prescribed by specialists and sales are dominated by drugs manufactured using biotechnology. The two main products, Rebif® and Erbitux®, generate around half of the division’s sales. Rebif® is a leading drug for the treatment of relapsing multiple sclerosis, where relapses and recovery episodes alternate. The human serum albumin-free formulation of Rebif® providing improved injection tolerability has been available outside the United States since 2007. The targeted cancer drug Erbitux® is approved for the treatment of metastatic colorectal cancer. This monoclonal antibody is also a standard in the treatment of squamous cell carcinoma of the head and neck. The fertility franchise, a complete portfolio of recombinant gonadotropins delivering around 14% of sales, is an important growth contributor based on current trends of couples postponing childbearing until later in life. Additionally, increasing ability to pay and access to health care has spurred the growth of Merck Serono’s infertility treatments in the Emerging Markets. The General Medicine unit contributes one third of overall sales and comprises branded products to treat diabetes and cardiovascular diseases. These drugs are no longer patent protected, yet as is the case for Glucophage® (metformin) in diabetes, they remain recognized standard treatments. Sales of this portfolio are growing in the Emerging Markets due to increasing wealth and changing lifestyles. Merck has been actively marketing pharmaceutical products in the Emerging Markets for decades and is viewed as a trusted partner by doctors and government agencies.
Often, successful therapy is not just about the drug, but also how it is administered to the patient. Merck Serono has years of experience in developing novel injection devices that are easy to use, especially in the areas of Multiple Sclerosis, Fertility and Endocrinology. They offer patients the benefit of less painful and often more reliable injections than using a prefilled syringe. From the healthcare professional’s perspective, these devices can enhance patient’s compliance with treatment. Successful adoption of devices has proven to be a significant differentiator even with the advent of generic competition, for example in the field of growth hormone deficiency.
Merck Serono invests around € 1 billion each year in research and development (R&D) focused on the core therapeutic areas of Oncology, Multiple Sclerosis, and Immunology. With three global hubs located in Europe, North America and Asia, Merck Serono is well placed to access local science and talent as well as to conduct global clinical trials.
In addition to in-house research, Merck Serono is committed to building long-term relationships with external partner companies, academic institutions and collaborative groups that enhance the productivity of its drug discovery activities, providing access to innovative and emerging technologies. The division is also seeking to strengthen its franchises by in-licensing of clinical stage compounds.
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