Merck 2008 Annual Report Download - page 54

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MANAGEMENT REPORT OF THE MERCK GROUP 49
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
Expanding business in eastern Europe
Business in the growth markets of eastern Europe developed dynamically. In Poland,
sales totaled € 26 million. Kidabion®, which was launched in Poland 2007, con-
tinued to show dynamic growth. Sales of the multivitamin product for children
increased by 27%, confirming its position as the market leader. Sales of Femibion®
climbed 61% to € 3.8 million and those of Nasivin® rose 23% to € 5.8 million in
Poland. We also grew strongly in other eastern European countries, including the
Czech Republic (by 31% to € 4.0 million), Hungary (by 32% to € 4.9 million) and Slo-
vakia (by 6.3% to € 2.4 million).
Global expansion
In Venezuela, we solidified our strong position. Apart from the success of Cebion®,
sales of which grew by 27% to € 7.9 million, sales of the fish oil product Maxepa® for
cardiovascular care surged again, rising 51% to € 5.7 million. Both products expanded
their market leadership positions. Total sales in Venezuela grew by 27% to € 19 million,
despite strong negative currency effects.
In India, sales grew by 47% to € 6.6 million despite currency effects. Nasivin®
accounted for more than one-half of sales. This successful performance was driven by
a dedicated sales force, which we established in 2008.
The Consumer Health Care division has been present in China since 2007 with the
multivitamin syrup Kidabion®. We have meanwhile expanded distribution to five
provinces and 12 major cities. In order to further expand the business in this key
growth market, we established a legal entity based in Shanghai on January 1, 2009.
Strong brands delivering value
In difficult markets and economically uncertain times, strong brands that consumers
trust are more valuable than ever before. Our strategy is succeeding: Sales of Nasivin®
grew by 39% to € 46 million in 2008. Sales of Kytta® soared by 75% to € 15 million.
Bion®3 also posted strong growth of 24% to € 44 million, as did Femibion®, which
grew 32% to € 26 million. Only our Seven Seas® brand saw a year-on-year decline in
sales of 6.1% to € 42 million due to unfavorable exchange rate movements.
The future strategy builds on the success of our strategic brands, with which we
already achieve more than 50% of our global sales.
Sales in India soar by 47%
despite substantial currency
effects.