Merck Millipore offers solutions to two key customer groups: on the one hand research and analytical laboratories in the pharmaceutical/biotechnology industry or in academic institutions and on the other hand production customers manufacturing large- and small-molecule drugs. Formed in 2010 through the acquisition of the Millipore Corporation, the division has developed into the global number three supplier of tools to the life science industry. The division has a broad product portfolio with scale and geographic reach and conducts smaller bolt-on acquisitions to make effective use of its global sales channels. Merck Millipore achieves the majority of its sales with consumables, significantly more than the estimated industry average. Based on its diversified group of customers and its focus on consumables the division generates recurring sales streams that lead to stable, attractive cash flows with a low risk profile. In 2012, the division contributed 24% to Group sales and 19% to Group EBITDA pre one-time items (excluding Corporate and Other).
The Bioscience business unit, which contributes 18% to divisional sales, is focused on the needs of researchers to understand complete biological systems and identify new therapeutic targets. The product portfolio aims to simplify the work flow for researchers, offering consolidated and validated solutions. Main product groups on offer include devices and consumables for filtration and sample preparation, reagents and kits for cell biology experiments, and small instruments and consumables for cell analysis. The life science research sector is highly innovative and the business unit generates between 15% and 20% of annual sales based on new product launches.
The Lab Solutions business unit accounts for 42% of sales and supplies products to laboratories that help to identify and eliminate impurities and contaminants. It is one of the leading suppliers of laboratory water equipment and consumables. Lab water purity is critical to the success of research experiments and the market is characterized by strong customer loyalty and high barriers to entry. The unit also develops and markets test solutions that help identify microbial contamination i.e. in pharmaceuticals, food or tap water.
The Process Solutions business unit supplies products used by pharmaceutical and biotechnology companies to manufacture large- and small-molecule drugs safely and efficiently. It contributes 40% of the division’s sales. Merck Millipore has become the leading supplier in this sector based on constant innovation, highest quality and reliable supply. In the area of small molecule production, Merck Millipore offers over more than 400 chemicals used for synthesis of active pharmaceutical ingredients in addition to products that convert drugs into their final forms, e.g. pills or injection solutions. The offering in biotech production comprises products supporting cell growth and gene expression, a wide range of filtration devices as well as salts and sugars that ensure the stability and biological activity of the final drug. Merck Millipore’s single-use solutions offer increased operational flexibility and versatility to biopharmaceutical customers since they eliminate time and cost of cleaning, are easily adaptable to different products and therefore need lower capital investment.
Success of new product launches is critical to the growth and profitability of all three business units. Therefore around 6% of sales are re-invested in R&D activities.
In North America, Merck has been operating its divisions under the name EMD since 2001 to differentiate itself from Merck & Co. of the United States, an independent company.
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