Merck 2014 Annual Report Download - page 104

99GROUP MANAGEMENT REPORT → REPORT ON ECONOMIC POSITION → Biopharmaceuticals
BIOPHARMACEUTICALS →
SALES COMPONENTS BY REGION – 2014
€ million / change in % Sales Organic growth
Exchange rate
effects
Acquisitions /
divestments Total change
Europe 2,424.3 –1.4 – 0.3 – –1.7
North America 1,291.9 1.0 – 0.1 – 0.9
Emerging Markets 1,666.9 13.5 – 5.3 – 8.2
Rest of World 400.2 5.2 – 5.6 –– 0.4
Biopharmaceuticals divison 5,783.3 3.6 –1.9 – 1.7
In 2014, sales of the key products of the Biopharmaceuticals divi-
sion developed as follows:
The drug Rebif®, which is used to treat relapsing forms of
multiple sclerosis, only posted a slight organic sales decline in
2014, despite increasing competitive pressure from oral formula-
tions. Amid currency headwinds of –1.2 %, Rebif® sales amounted
to € 1,840 million (2013: € 1,865 million). In North America,
which generated 53 % of Rebif® sales (2013: 51 %) and is the larg-
est market for this product, sales increased to € 971 million in
2014 (2013: €956 million). Price increases compensated for lower
sales volumes, leading to an organic sales increase of 1.5 %. In
Europe, which accounts for 38 % of sales (2013: 40 %) and is the
second-largest region for the product, sales of Rebif® declined
organically by – 6.0 % to €698 million due to competition (2013:
€745 million). Together, the Emerging Markets and Rest of World
regions continued to account for a 9 % share of sales.
In 2014, sales of the oncology drug Erbitux® showed organic
growth of 5.9 %. Including the foreign exchange impact of – 3.4 %,
which primarily stemmed from the Japanese yen and Latin Amer-
ican currencies, sales increased overall by €22 million to €904
million (2013: € 882 million). The Biopharmaceuticals division
achieved organic growth in all three regions in which it holds the
marketing rights. In Europe, the top-selling region for Erbitux®
with a share of 56 % (2013: 57 %), sales totaled € 504 million
(2013: €501 million), which includes organic growth of 0.7 % and
insignificant negative
exchange rate effects. At 18.1 %, the
Emerging Markets region generat
ed the strongest organic growth,
delivering sales of €257 million for the division’s oncology drug
(2013: €232 million). This region’s contribution to total Erbitux®
sales thus increased to 28 % (2013: 26 %). In the Rest of World
region, Erbitux® sales declined slightly to € 144 million (2013:
€149 million), since organic growth of 4.1 % was unable to offset
negative foreign exchange effects of – 7.7 %. Business develop-
ments were positive in Japan, where organic growth amounted to
7.2 %. This was mainly attributable to the approval of Erbitux® in
head and neck cancer.