The Merck Millipore division is a leading supplier of life science tools and has a broad product and technology portfolio and offers innovative solutions for scientists and engineers in the life science industry. Life sciences comprise the research branches of natural and engineering sciences concerned with the structure and behavior of living organisms. The division’s products and services are used in the research, development and manufacture of biotechnological and pharmaceutical drug therapies, as well as in research and application laboratories. In addition, Merck Millipore products and services also reach adjacent markets, such as food and beverage. The division was established in 2010 following the acquisition of the Millipore Corporation.
In the third quarter of 2014, Merck Millipore contributed 23% to Group sales and 18% to EBITDA pre (excluding Corporate and Other). The majority of sales are generated by consumables. This enables the division to achieve steady sales and stable, attractive cash flows in an industry that is characterized by stringent regulatory requirements. A highly diversified and loyal customer base also contributes to the favorable risk profile. At the same time, Merck Millipore benefits from its broad portfolio and its global reach. Merck Millipore comprises three business areas: Bioscience, Lab Solutions and Process Solutions, as well as multiple specialized business fields. In turn, each business area is partnered with a commercial area that is focused on serving and partnering with customers across the globe.
The main product groups of the Bioscience business area include tools and consumables for filtration and sample preparation, reagents and kits for cell biology experiments, as well as small tools and consumables for cell analysis. With these products, Merck Millipore supports its customers in understanding complex biological systems and identifying new target molecules. The Bioscience business area contributed 15% to divisional sales in the third quarter of 2014. Merck Millipore offers complete and validated applications to make research processes faster and more efficient. The Bioscience business area continues to pursue innovative approaches, recently launching the Magna™ Nuclear RNA-binding Protein Immunoprecipitation (RIP) Kits, which are designed for the analysis of chromatin associated RNA such lncRNAs, enhancer RNAs and miRNAs.
The Lab Solutions business area manufactures products for research as well as analytical and clinical laboratories in a wide variety of industries. The business area accounted for 40% of divisional sales in the third quarter of 2014. It is one of the leading suppliers of laboratory water equipment, laboratory chemicals and consumables. In addition, Lab Solutions develops and markets test solutions to identify microbial contamination, for example in pharmaceutical products, food or drinking water. For inorganic chemistry, Lab Solutions supplies ultrapure reagents, including salts, acids, caustic alkalis, and buffering agents. It also manufactures reference materials for instrumental analysis and products for inorganic trace analysis. In the third quarter, the Lab Solutions business area launched new Steritest™ Symbio Pumps for easier, safer and more reliable sterility testing of pharmaceutical products in laminar flow hoods, isolators and clean rooms. The Steritest™ Symbio Pumps were developed to address stringent pharmaceutical testing requirements. The launch continues Merck Millipore’s 40-year legacy of providing groundbreaking sterility testing products. Additionally, a new ready-to-Use EZ-Fit™ Filtration Unit was launched to leverage industry leading technology for more efficient pharmaceutical manufacturing in-process testing.
The Process Solutions business area offers a diversity of products to pharmaceutical and biotechnology companies that enable customers to manufacture large- and small-molecule drugs safely, effectively and cost-efficiently.
Accounting for 45% of Merck Millipore sales in the third quarter of 2014, Process Solutions offers its customers continuous innovations, highest quality standards as well as high reliability of supply. The business area’s portfolio comprises more than 400 chemicals for the synthesis of active pharmaceutical ingredients as well as drug delivery compounds. The offering in biotech production comprises products supporting cell growth and gene expression, a wide range of filtration systems, as well as salts and sugars. The single-use solutions offered by the Process Solutions business area provide increased operational flexibility to biopharmaceutical customers since they eliminate time- and cost-intensive cleaning procedures. Moreover, these single-use solutions are compatible with various products typically used by customers in this industry, reducing investment costs for customers.
On August 20, 2014, Merck Millipore and Samsung BioLogics signed a Memorandum of Understanding for a strategic alliance in the biopharmaceutical business. The proposed alliance is intended to encompass a long-term supply agreement in which Merck Millipore will provide raw materials for biopharmaceutical manufacturing.
On September 22, 2014, Merck and Sigma-Aldrich announced that they had entered into a definitive agreement under which Merck will acquire Sigma-Aldrich for US $17.0 billion (€ 13.1 billion). The combination would establish one of the leading players in the global life science industry. The closing of the transaction is expected in mid-2015, subject to regulatory approvals and other customary closing conditions. In 2013, Sigma-Aldrich generated US $ 2.7 billion in sales.
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