According to the International Monetary Fund (IMF), global gross domestic (GDP) increased by 3.3% in 2012. While the industrialized countries generated an increase of only 1.3%, the GDP of emerging economies and developing countries grew by 5.3%. The GDP of the United States, the world’s largest economy, grew by 2.2% in 2012. For the eurozone, the International Monetary Fund noted a decline in gross domestic product of 0.4%. Merck operates in the pharmaceutical, chemical and life science sectors.
Pharmaceutical market
IMS Health, a provider of market analyses for the health care industry, points to an increase in sales in the prescription drugs segment of between 3% and 4% in 2012, the lowest market growth in years. The increase corresponds to global growth of US$ 30 billion worldwide to a market volume of nearly US$ 1 trillion in 2012.
The market for patented, prescription drugs (excluding generics), which is crucial to research-based pharmaceutical companies, declined. According to Evaluate Pharma, a further pharmaceutical market research firm, this market achieved a global market volume of US$ 709 billion, corresponding to a decline of 0.9% compared to 2011. According to a survey by this institute, R&D spending in 2012 by the global pharmaceutical and biotech industry was well over US$ 134 billion, which represents a decline of 0.3% compared to 2011.
The market researchers from Nicholas Hall reported a 4.2% increase in the global market for over-the-counter drugs to a volume of € 88 billion. In terms of market share, Europe dominates, followed by Asia (excluding Japan) and North America.
Chemical market
In 2012, the dynamism of the chemical business abated worldwide; chemical industry output even declined in the European Union. According to data from various chemical industry associations (American Chemistry Council (ACC)/European Chemical Industry Council (CEFIC) global chemical production output grew by only 2% in 2012 after increasing by nearly 5% in 2011.
According to the German Chemical Industry Association (VCI), production in the German chemical industry declined by 3%. The debt crisis in Europe was the reason stated for this decline. CEFIC therefore also lowered its forecast for 2012. Chemical sales in Germany remained constant at € 184 billion.
Life science market
Subsequent to the acquisition of Millipore in 2010, Merck is well-positioned in the global life science market. The life science sector also includes laboratory products and services as well as products for research and pharmaceutical and biotech industry production offered by Merck Millipore.
The market for Merck products represents a segment accounting for a volume of around € 20 billion within the worldwide life science market, which has an estimated market volume of € 50 billion (Source: Bank of America). The markets in which Merck operates show growth rates of more than 5%.
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