Merck 2008 Annual Report Download - page 39

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34 | Merck Annual Report 2008
We expanded our position in North America, where sales rose by 7.2% to € 783 million.
In Latin America, we recorded a 19% increase in sales. In Brazil, our largest market,
sales grew sharply by 33% to € 196 million. Sales in Venezuela and Colombia surged
by 26% and 46%, respectively, whereas in Mexico, sales declined by 8.5% due to over-
stocking by wholesalers. Sales grew by 20% in the region Asia, Africa, Australasia,
primarily thanks to the success in China, where sales jumped by 84% to € 114 million,
and Japan, which posted a 64% rise in sales to € 30 million as well as good growth in
smaller markets such as Saudi Arabia and Algeria.
Return on sales (ROS) amounted to 11.9% in 2008. Nominal free cash flow was
€ 554 million, considerably more than in 2007, the year in which we acquired Serono.
By contrast, free cash flow adjusted for acquisitions and disposals declined by 28%
to € 559 million with the termination of a program to sell receivables in Italy (details
can be found on page 99).
Therapeutic areas
Research Development Marketing
Oncology
Neurodegenerative Diseases
Autoimmune and Inflammatory Diseases
Fertility
Endocrinology
CardioMetabolic Care and other products
Oncology
With the targeted oncology drug Erbitux® (cetuximab), Merck Serono has not only
considerably increased the number of treatment options available in colorectal cancer,
but also opened up new medical prospects in the treatment of head and neck cancer
as well as lung cancer. In 2008, our Oncology business unit generated sales of
€ 574 million. The majority share was attributable to Erbitux®, which achieved a 20%
increase in sales to € 565 million. Erbitux® currently holds marketing authorizations
in 76 countries worldwide.
In July, the European Commission approved the expanded use of Erbitux® in combina-
tion with chemotherapy to include not only second- and third-line treatment but also
first-line treatment of patients with epidermal growth factor receptor (EGFR)-expressing,
KRAS wild-type metastatic colorectal cancer. Patients with KRAS wild-type tumors,
which occur in up to 65% of cases, are most likely to respond to Erbitux®, making this
drug the first tailored therapy in first-line treatment of metastatic colorectal cancer. As
expected, the sales growth rate of Erbitux® slowed from the second to the third quarter
of 2008. This was due to the fact that KRAS testing had to be implemented as a standard
The Merck Serono division has
strengthened its position in
the North American market.
Erbitux® offers new prospects
in the treamtent of head, neck
and lung cancer.