Merck 2014 Annual Report Download - page 58

53GROUP MANAGEMENT REPORT → FUNDAMENTAL INFORMATION ABOUT THE GROUP → Objectives and strategies of the Group
Allergopharma
The market for causal allergy therapies is a global growth market.
On the one hand, the global market growth expected by market
researchers will be generated by an increasing number of people
with allergies, and on the other hand it is based on the growing
use of specific immunotherapy (SIT) in many emerging markets.
Allergopharma is a manufacturer of diagnostics and prescription
drugs for allergen immunotherapy (AIT). AIT (hyposensitization,
desensitization, allergy immunization) is the only causal therapy
for treating allergies to unavoidable allergens. AIT is primarily
carried out by physicians who specialize in allergies, such as ENT
doctors, dermatologists, pediatricians and pul monologists. With
its own research department and in cooperation with research
institutes and other partners, the Group is helping develop a better
understanding of the immunological mechanism that underlies
the development of allergies and is actively working on the next
generation of drugs for allergen immunotherapy. Plans to expand
production in Reinbek near Hamburg in 2016, thus expanding
capacity, will advance global expansion and will also help to meet
the increasingly high manufacturing standards. As was previously
the case, products to diagnose and treat type1 allergies such as
hay fever or allergic asthma will be manufactured here under
ultrapure, sterile conditions.
Consumer Health
In 2012 and 2013, Consumer Health undertook steps to strategi-
cally realign the internal organization while sharpening its focus
on core brands and particularly attractive key markets. In 2014,
Consumer Health forged ahead with its growth agenda, particu-
larly in the emerging markets of Latin America and Southeast
Asia. As a result, Consumer Health achieved organic sales growth
of 5.4 %, clearly exceeding general market growth. To this end, the
company is pursuing a clear strategy: The aim is for Consumer
Health to achieve a market share of at least 3 % by 2021 in each of
its top 20 markets (including France, Mexico, Brazil, Germany,
Indonesia, India, and the United Kingdom), with at least three
brands in leading positions.
An important milestone within the framework of this strategy
was the transfer of the Neurobion® and Floratil® brands from the
former Biopharmaceuticals division
to Consumer Health in 2014.
Neurobion® is a leading global brand in the vitamin B segment and
Floratil® is a leading brand in the probiotic antidiarrheal segment
in Brazil. Following their transfer to Consumer Health in 2014,
both brands clearly demonstrated potential to focus more closely
on consumer wishes and needs in core markets. For instance, the
growth of Floratil® in the key market of Brazil increased more
than tenfold. Further important components of implementing the
“3 x 3” strategy are geographic expansion of existing brands into
new markets, such as the recent market launch of the Bion® brand
in Brazil, as well as possible inorganic growth through tactical
takeovers and product acquisitions, as long as these are in line
with the strategic direction.
Life Science business sector
Life Science
The Life Science business is one of the leading players in the
attractive global life science tools industry. The business has a
global presence across the laboratory and process markets– two
broad customer sub-segments with differing needs. The strategy in
laboratory markets is based on three success factors: a broad and
attractive portfolio, a simple customer interface and an organiza-
tion able to deal with complexity, for example more than 70,000
products serving over 1 million customers. The three key success
factors for the process markets strategy are a deeply technical field
force, product depth in developed markets as well as portfolio
breadth in emerging markets.
The Life Science business will focus on expanding its presence
across laboratories in emerging geographies as well as gaining
share of wallet in North America. The Life Science business aims
to continue to grow above market by accelerating growth in the
process solutions and key laboratory businesses. This includes
maintaining above-market R&D investments to remain on the
innovation forefront, solving customer needs and delivering
sustainable, profitable growth.
The planned acquisition of Sigma-Aldrich would establish one
of the leading players in the life science industry, fostering key
capabilities fully in line with the Life Science business’ strategy.