Merck 2008 Annual Report Download - page 44

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MANAGEMENT REPORT OF THE MERCK GROUP 39
24 Responsibility
26 Merck shares
30 Pharmaceuticals business sector
50 Chemicals business sector
12 Overall economic situation
14 Economic development
of Merck
15 Financial position and results
of operations
60 Corporate and Other
61 Risk report
64 Report on expected developments
64 Subsequent events
Metformin recommended for type 2 diabetes
The active ingredient metformin remains the drug of choice for first-line therapy of
type 2 diabetes. More than six million patients worldwide are benefiting from one of
our oral diabetes therapies based on metformin. According to the International Diabetes
Federation (IDF), around 246 million people have diabetes worldwide. Type 2 accounts
for 85 to 90% of these cases, and the number continues to grow. According to a study
by the Health Services Research Network, the number of type 2 diabetes cases in the
United States alone is expected to increase to 29 million by 2050. The guidelines of
the IDF, the American Diabetes Association (ADA) and the European Association for
the Study of Diabetes (EASD) therefore recommend that newly diagnosed patients with
type 2 diabetes be treated immediately with metformin, for example Glucophage®.
Despite generic competition, sales of the metformin franchise rose 9.0% to € 290 mil-
lion. Branded products from the Glucophage® family generated a respectable 6.1%
increase in sales to € 252 million. Glucophage XR® – a once-daily formulation – per-
formed especially well, with sales surging by more than 33%.
Thyroid hormone Euthyrox® continues to deliver
Sales of our products to treat thyroid disorders increased by 10% to € 150 million
in 2008. Nearly two-thirds of sales were attributable to Europe. Sales of the thyroid
hormone Euthyrox® increased by 12% to € 129 million. Currently, around 12 million
people in more than 70 countries take Euthyrox® every day.
With drugs to treat hypo- and hyperthyroidism as well as to prevent iodine deficiency
diseases, Merck Serono is the second largest supplier worldwide. In Europe, Latin America
and China we are number one. Thyroid disorders are one of the world’s most prevalent
diseases. According to epidemiological data, more than 300 million people suffer from
hypothyroidism, i.e. underactivity of the thyroid gland, while not even 20% of them
are currently being treated. We are therefore working to educate the public and improve
awareness of the need to adequately manage this disease.
Research and development
Research and development spending increased markedly by 22% to € 1,074 million
in 2008. This is equivalent to 22% of the division’s total revenues. Apart from oncology
we are focusing our research activities on innovative specialist therapies to treat neu-
rodegenerative diseases such as multiple sclerosis as well as autoimmune and inflam-
matory diseases. Here and in the therapeutic areas of Endocrinology and Fertility we
are simultaneously working on numerous development projects, for example, therapies
to help infertile couples to conceive a child as well as treatments for growth disorders.
Metformin is the drug of
choice in type 2 diabetes.
Globally, more than 300 mil-
lion people suffer from hypo-
thyroidism.