Development by regions Audited

Merck Serono | Sales by region – 2013

From a geographic perspective, organic sales growth in the Merck Serono division was bolstered by the Emerging Markets and Rest of World regions, which generated sales increases of 12.2% and 9.9%, respectively.

Europe, Merck’s top-selling region, posted a slight organic decline in sales of –0.1%, with a negative foreign exchange impact of –0.6%, thereby generating sales of € 2,482 million (2012: € 2,502 million). While Russia, Turkey, Germany, and eastern European countries in particular delivered organic sales growth, France as well as countries in southern Europe suffered sales declines. Overall, the division continued to feel the negative effects of the budget constraints in several European countries as well as the resulting health care cost containment measures. At 42%, Europe continued to account for the largest proportion of the division’s sales, as in 2012.

Emerging Markets, the division’s second-largest region by sales, posted very strong organic growth of 12.2%, which was offset by a negative foreign exchange impact of –9.5%. Consequently, sales increased from € 1,737 million to € 1,785 million. All of Merck Serono’s franchises in this region contributed to organic growth. The main drivers were products to treat cardiovascular diseases, diabetes and thyroid disorders. The share of divisional sales generated by the Emerging Markets region increased by one percentage point to 30%, which reflects the growing importance of this region to Merck Serono.

In 2013, sales in North America amounted to € 1,280 million, declining by –4.1% compared to 2012 (€ 1,335 million), which comprised an organic sales decrease of –1.1% and unfavorable foreign exchange effects of –3.0%. This slight organic decline is primarily attributable to the Fertility franchise. The North America region contributed 21% (2012: 22%) to the division’s sales.

In the Rest of World region, sales grew organically by 9.9%, mainly powered by the good sales performance of Erbitux® and strong demand for products from the Fertility franchise. Including strong currency headwinds of –13.4%, which were primarily attributable to the Japanese yen, sales totaled € 407 million (2012: € 422 million). Once again, the Rest of World region contributed 7% to divisional sales.