Merck KGaA

Merck KGaA (XETR: MRK) is a multinational pharmaceutical and chemicals company that operates in the healthcare, life sciences, and performance materials industries. The company was founded in 1668 and is headquartered in Germany. It generated revenue of EUR 22.2 billion (USD 23.4 billion) in 2022. 

Merck KGaA’s largest segment is Life Science , which focuses on the development of products and devices used in the development of new drugs and treatments. This ranges from testing devices and chemical materials to services such as contract manufacturing and diagnostic testing. This is followed by its Healthcare segment, which focuses on three key areas: oncology (Tepmetko), neurology (Mavenclad, Rebif), and immunology. Furthermore, Merck KGaA develops chemicals and materials for Electronics and industrial uses, including semiconductors, displays, and automotive vehicles. Merck KGaA’s R&D pipeline at the end of Q4 2022 consisted of 14 drug candidates spread across neurology, immunology, oncology, and global health.

From a geographic perspective, the Asia-Pacific is the largest contributor to sales, with over 34% of net sales coming from the region. This is followed by North America and Europe, which contribute ~28% each to revenue. As part of Merck KGaA’s five-year plan set in Q3 2021, the company is targeting EUR 25 billion in sales by 2025 , with growth driven by three key areas—process solutions and life science services, new healthcare products, and semiconductor solutions. This would be supported by a ~6% CAGR in organic sales over 2021–2025. From a sustainability perspective, Merck KGaA is aiming to incorporate sustainability targets related to the environment and organizational culture by 2030, with a longer-term goal of becoming climate neutral by 2040.