Merck 2014 Annual Report Download - page 21

16 MAGAZINE → Markets in motion
Central and South America
6.4
Europe
13.9
Asia-Pacific
66.1
North America
6.6
Sub-Saharan Africa
2.2
North Africa & Middle East
4.8
%
Among other areas, the company is invest-
ing in biosimilars, which are subsequent
versions of innovator biopharmaceuticals
made by a different company following
patent expiration of the innovative prod-
uct. Another important step is the strategic
alliance with Pfizer, which was announced
in November 2014 and will allow the
two companies to jointly strengthen and
accelerate the development of immuno-
oncology assets.
The consumer health care market is also
experiencing extremely dynamic growth
in emerging markets such as China, India,
Russia, and Latin America, along with
markets in the Middle East and Africa.
This growth is being driven by increasing
health awareness among the emerging
middle class, as well as the desire to feel
young and healthy until as late an age as
possible. Market research on the expand-
ing middle class segment in Africa shows
that health has become synonymous with
prosperity. “Health is the key to realizing
a higher standard of living. Good health
enables better performance, success and
recognition in one’s professional as well as
private life,” says Erich Nobis, Vice Presi-
dent, Intercontinental at Consumer Health,
particularly with a view to emerging mar-
kets. This business encompasses products
tailored to the markets and target groups,
such as food supplements for preventive
health care, along with informational
material for consumers and training for
personnel. “In order to accomplish this,
we have to be close to consumers, which
means we have to build and expand our
organizations in the core markets. Here,
qualified employees with a cultural back-
ground in the respective market are espe-
cially important,” notes Nobis.
LEVERAGING GLOBAL
OPPORTUNITIES
The Life Science business is also on a growth
course and is leveraging the opportunities
offered by both mature and emerging mar-
kets. Every year, the company develops
new reliable products for the life science
industry, “Scientists are everywhere and
science happens across the globe. Tradi-
For the Performance Materials business, the
key goal is to underpin its global leadership
position in liquid crystals and functional
pigments, as well as to expand this position
through investments in new technologies.
Effect pigments make coatings, plastics,
print products, and cosmetics shine. In its
business with effect pigments, which are
used in automotive coatings, the company
is thus also benefiting from the boom the
automotive industry is experiencing in
emerging markets. “Today it is more im-
portant than ever before to think outside
the box, and to meld the familiar with the
unfamiliar in order to develop truly inno-
vative content, products and applications,”
summarizes Walter Galinat, who heads the
Performance Materials business sector of
Merck KGaA, Darmstadt, Germany. With
this philosophy, the company is laying the
ideal foundation for success in dynamic
markets.
tional sources of scientific funding in
North America and Europe are still lead-
ing, but stagnating as government funding
is constrained and pharmaceutical research
is consolidating,” says Daniel Stamm, Head
of Global Pharma Processing at the Life
Science business. Many emerging markets
are investing heavily to develop biosimilar
production capabilities. Backed by favor-
able demographics as well as improving
education standards, Africa and the Middle
East have the potential to foster a new
generation of scientists. “On the technology
front, we are seeing increasing volumes of
biologic drug production, of both currently
off-patent drugs as well as a burgeoning
pipeline of new biological entities. Cellular
analysis is becoming more relevant, as is
the purity of lab water and chemicals,”
says Stamm.
MIDDLE CLASS →
GLOBAL DISTRIBUTION
in 2030
The middle class is growing worldwide,
and this growth is especially strong in Asia.
In 2030, well over two-thirds of the
middle class will reside in Asian countries.
Source: United Nations Human Development Report 2013