Merck KGaA
Encyclopedia
Merck KGaA is a German chemical
and pharmaceutical company
. Merck, also known as “German Merck” and “Merck Darmstadt”, was founded in Darmstadt
, Germany, in 1668, making it the world's oldest operating chemical and pharmaceutical company. The company was privately owned until going public in 1995. However, the Merck family still controls a majority (≈70%) of the company's shares.
Following World War I
, Merck lost possession of its foreign sites, including the Merck & Co.
subsidiary in the United States. Merck & Co., called Merck Sharp and Dohme (MSD) outside the US and Canada, is now an independent company.
Merck KGaA operates mainly in Europe, Africa, Asia, Oceania
and Latin America
. Since Merck & Co. holds the rights to the Merck name in the U.S. and Canada, the company operates under the umbrella brand EMD Chemicals in North America, formed from the initials of Emanuel Merck, Darmstadt.
, assumed ownership of the Engel-Apotheke ("Angel Pharmacy") in Darmstadt, Germany.
In 1816, Emanuel Merck took over the pharmacy. Thanks to his scientific education he was successful in isolating and characterizing alkaloids in the pharmacy
laboratory
. He began the manufacture of these substances "in bulk" in 1827, touting them as a "Cabinet of Pharmaceutical and Chemical Innovations". He and his successors gradually built up a chemical-pharmaceutical factory
that produced — in addition to raw materials for pharmaceutical preparations — a multitude of other chemicals and (from 1890) medicines.
In 1891, Georg(e) Merck established himself in the United States and set up Merck & Co. in New York. Merck & Co. was confiscated following the First World War
. and set up as an independent company in the United States. Today, the US company has about 106,000 employees (Nov. 2009) in 120 countries and 31 factories worldwide. It is one of the top 5 pharmaceutical companies worldwide, larger than its German ancestor, which employs around 40,000 people in 62 countries (as of September 2010).
, the world's largest producer of oral contraceptives. On March 23, 2006, Bayer
AG made a supported offer for Schering and Merck decided to drop out of the bidding for the company. Schering is not to be confused with Schering-Plough
which was once part of Schering AG but was acquired by Merck & Co. in 2009.
SA, Switzerland's largest biotech firm. The deal included a buy-out of the Bertarelli
family's 64.5% stake in Serono to be followed by a public tender offer for the remaining shares starting in November 2006. The combined company has an R&D budget of approximately $1.1 billion and sales of approximately $4.6 billion. Its approximately $2 billion in sales of biologics
would make it 7th among pharmaceutical/biotech companies. The new entity, Merck Serono
, began operations in 2007.
(MA) based Millipore Corporation
for EUR 5.3 billion (US$ 7.2 billion). It is now a division of Merck's business unit chemicals - Merck Millipore.
from opium
in 1805, Merck pioneered (from 1827) the commercial manufacture of morphine for an expanding global market. From 1884 onwards, Merck also played role in the production and marketing of cocaine
. Sigmund Freud
, author of Über Coca (1884), was an enthusiastic collaborator in Merck's coca research, though the methodological sophistication of his self-experimentation studies has been challenged.
Around World War I
, Merck systematically patented many drugs including MDMA (ecstasy) and several of its analogues, though no uses for them were given. Attention was directed at vitamins as a new product
category, and Vigantol was introduced in 1927, followed by Cebion in 1934.
Following the defeat of Germany in World War II
, Merck was granted permission by the military government to produce drugs, pesticides, food preservatives, reagents, and fine chemicals for laboratory use. Soon afterwards the boom commonly known as the "Wirtschaftswunder
" (economic miracle
) set in. For Merck this meant two-digit sales-growth figures for many years. Products of this time included corticoid preparations — for example Fortecortin
, which is still used today — the cold remedy Nasivin or the hormone preparations Gestafortin and Menova.
The focus of Merck's current pharmaceutical R&D is on oncology
and cardio-metabolic care. In the former therapeutic area, its first marketed product is Erbitux (cetuximab
), for which it has marketing rights worldwide, apart from North America. (Cetuximab was discovered by Imclone Systems
, and is marketed in North America by Bristol-Myers Squibb
.) Other products from Merck include Metformin
, Bisoprolol
, Levothyroxine
and Digitoxin
.
, work started on effect pigments in 1957. An example for these pigments are alumina effect pigment
s sold under brand name Xirallic®. Ten years later the company initiated its involvement in liquid crystals, leading to its market leading role today. Liquid crystals account for the bulk of Merck's profits at present. Currently they're the world leader in producing liquid crystals for Flat-TV's and monitors.
In the area of analytical chemistry
, Merck plays a leading role in the development of chromatographic
methods and materials.
cartel.
The NHS
alleges various drugs companies exploited the oligopolistic market
conditions, forcing the NHS to pay inflated prices. NHS fraud investigators believe there was a conspiracy
to limit the supply of 30 of its most commonly prescribed drugs, including a class of penicillin
antibiotics and to a generic version of best-selling ulcer
treatment Zantac. The NHS has so far filed claims in relation to just three drugs, seeking damages of more than £150m, while the Serious Fraud Office
(SFO) is conducting a parallel investigation into the price-fixing allegations limited to the supply of blood-thinning pill warfarin
and penicillin
-based antibiotics. Homes and offices of executives
at six firms, including Ranbaxy, Generics UK, Norton Healthcare
, Goldshield and Regent-GM.were raided by the SFO in May 2002.
Chemical industry
The chemical industry comprises the companies that produce industrial chemicals. Central to the modern world economy, it converts raw materials into more than 70,000 different products.-Products:...
and pharmaceutical company
Pharmaceutical company
The pharmaceutical industry develops, produces, and markets drugs licensed for use as medications. Pharmaceutical companies are allowed to deal in generic and/or brand medications and medical devices...
. Merck, also known as “German Merck” and “Merck Darmstadt”, was founded in Darmstadt
Darmstadt
Darmstadt is a city in the Bundesland of Hesse in Germany, located in the southern part of the Rhine Main Area.The sandy soils in the Darmstadt area, ill-suited for agriculture in times before industrial fertilisation, prevented any larger settlement from developing, until the city became the seat...
, Germany, in 1668, making it the world's oldest operating chemical and pharmaceutical company. The company was privately owned until going public in 1995. However, the Merck family still controls a majority (≈70%) of the company's shares.
Following World War I
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...
, Merck lost possession of its foreign sites, including the Merck & Co.
Merck & Co.
Merck & Co., Inc. , also known as Merck Sharp & Dohme or MSD outside the United States and Canada, is one of the largest pharmaceutical companies in the world. The Merck headquarters is located in Whitehouse Station, New Jersey, an unincorporated area in Readington Township...
subsidiary in the United States. Merck & Co., called Merck Sharp and Dohme (MSD) outside the US and Canada, is now an independent company.
Merck KGaA operates mainly in Europe, Africa, Asia, Oceania
Oceania
Oceania is a region centered on the islands of the tropical Pacific Ocean. Conceptions of what constitutes Oceania range from the coral atolls and volcanic islands of the South Pacific to the entire insular region between Asia and the Americas, including Australasia and the Malay Archipelago...
and Latin America
Latin America
Latin America is a region of the Americas where Romance languages – particularly Spanish and Portuguese, and variably French – are primarily spoken. Latin America has an area of approximately 21,069,500 km² , almost 3.9% of the Earth's surface or 14.1% of its land surface area...
. Since Merck & Co. holds the rights to the Merck name in the U.S. and Canada, the company operates under the umbrella brand EMD Chemicals in North America, formed from the initials of Emanuel Merck, Darmstadt.
History
The roots of Merck reach back into the 17th Century. In 1668, Friedrich Jacob Merck, an apothecaryApothecary
Apothecary is a historical name for a medical professional who formulates and dispenses materia medica to physicians, surgeons and patients — a role now served by a pharmacist and some caregivers....
, assumed ownership of the Engel-Apotheke ("Angel Pharmacy") in Darmstadt, Germany.
In 1816, Emanuel Merck took over the pharmacy. Thanks to his scientific education he was successful in isolating and characterizing alkaloids in the pharmacy
Pharmacy
Pharmacy is the health profession that links the health sciences with the chemical sciences and it is charged with ensuring the safe and effective use of pharmaceutical drugs...
laboratory
Laboratory
A laboratory is a facility that provides controlled conditions in which scientific research, experiments, and measurement may be performed. The title of laboratory is also used for certain other facilities where the processes or equipment used are similar to those in scientific laboratories...
. He began the manufacture of these substances "in bulk" in 1827, touting them as a "Cabinet of Pharmaceutical and Chemical Innovations". He and his successors gradually built up a chemical-pharmaceutical factory
Factory
A factory or manufacturing plant is an industrial building where laborers manufacture goods or supervise machines processing one product into another. Most modern factories have large warehouses or warehouse-like facilities that contain heavy equipment used for assembly line production...
that produced — in addition to raw materials for pharmaceutical preparations — a multitude of other chemicals and (from 1890) medicines.
In 1891, Georg(e) Merck established himself in the United States and set up Merck & Co. in New York. Merck & Co. was confiscated following the First World War
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...
. and set up as an independent company in the United States. Today, the US company has about 106,000 employees (Nov. 2009) in 120 countries and 31 factories worldwide. It is one of the top 5 pharmaceutical companies worldwide, larger than its German ancestor, which employs around 40,000 people in 62 countries (as of September 2010).
Failed Schering AG bid
On March 13, 2006, Merck announced a takeover bid for Schering AGSchering
Schering AG was a research-centered German pharmaceutical company. It was founded in 1851 by Ernst Christian Friedrich Schering and merged with Bayer's pharma sector in December 2006. The company's headquarters was in Berlin-Wedding, Germany...
, the world's largest producer of oral contraceptives. On March 23, 2006, Bayer
Bayer
Bayer AG is a chemical and pharmaceutical company founded in Barmen , Germany in 1863. It is headquartered in Leverkusen, North Rhine-Westphalia, Germany and well known for its original brand of aspirin.-History:...
AG made a supported offer for Schering and Merck decided to drop out of the bidding for the company. Schering is not to be confused with Schering-Plough
Schering-Plough
Schering-Plough Corporation was a United States-based pharmaceutical company. It was founded in 1851 by Ernst Christian Friedrich Schering as Schering AG in Germany. In 1971, the Schering Corporation merged with Plough to form Schering-Plough. On November 4, 2009 Merck & Co...
which was once part of Schering AG but was acquired by Merck & Co. in 2009.
Acquisition of Serono
In September 2006 the company announced a takeover bid of $13.2 billion for SeronoSerono
Serono is a biotechnology company headquartered in Geneva, Switzerland. The company was founded as the Serono Pharmacolodgical Institute by Cesare Serono in 1906 in Italy. A key step in its development was the discovery of a method of extracting urinary gonadotropins by Dr Piero Donini allowing...
SA, Switzerland's largest biotech firm. The deal included a buy-out of the Bertarelli
Ernesto Bertarelli
Ernesto Bertarelli is a Swiss-Italian billionaire and entrepreneur.Together with his extended family, Bertarelli was ranked 81st in the 2011 annual ranking of the world's wealthiest people compiled and published by Forbes magazine, The family's wealth was estimated at US$10.0...
family's 64.5% stake in Serono to be followed by a public tender offer for the remaining shares starting in November 2006. The combined company has an R&D budget of approximately $1.1 billion and sales of approximately $4.6 billion. Its approximately $2 billion in sales of biologics
Biologics
A biologic is a medicinal product such as a vaccine, blood or blood component, allergenic, somatic cell, gene therapy, tissue, recombinant therapeutic protein, or living cells that are used as therapeutics to treat diseases...
would make it 7th among pharmaceutical/biotech companies. The new entity, Merck Serono
Merck Serono
Merck Serono is a pharmaceutical company headquartered in Geneva, Switzerland. In September 2006, Merck KGaA announced its intent to purchase the majority of Serono shares from Ernesto Bertarelli and the Bertarelli family. The Merck-Serono merger was announced on September 21, 2006...
, began operations in 2007.
Acquisition of Millipore
In 2010 Merck took over BillericaBillerica, Massachusetts
Billerica is a town in Middlesex County, Massachusetts, United States. The population was 40,243 at the 2010 census. It is the only town named Billerica in the United States and borrows its name from the town of Billericay in Essex, England.- History :...
(MA) based Millipore Corporation
Millipore Corporation
EMD Millipore, also known as Merck Millipore outside the United States and Canada, was founded in 1954, listed among the S&P 500 since the early 1990s, is an international biosciences company, known widely for its micrometer pore-size filters and tests...
for EUR 5.3 billion (US$ 7.2 billion). It is now a division of Merck's business unit chemicals - Merck Millipore.
EMD Chemicals Gibbstown NJ
With the acquisition of Millipore, Merck is consolidating its US holdings and shutting down the Gibbstown facility and warehouse. Gibbstown operations will be transferred to the new Philadelphia office and Millipore headquarters.Operations
Pharmaceuticals
After Wilhelm Adam Sertürner's isolation of morphineMorphine
Morphine is a potent opiate analgesic medication and is considered to be the prototypical opioid. It was first isolated in 1804 by Friedrich Sertürner, first distributed by same in 1817, and first commercially sold by Merck in 1827, which at the time was a single small chemists' shop. It was more...
from opium
Opium
Opium is the dried latex obtained from the opium poppy . Opium contains up to 12% morphine, an alkaloid, which is frequently processed chemically to produce heroin for the illegal drug trade. The latex also includes codeine and non-narcotic alkaloids such as papaverine, thebaine and noscapine...
in 1805, Merck pioneered (from 1827) the commercial manufacture of morphine for an expanding global market. From 1884 onwards, Merck also played role in the production and marketing of cocaine
Cocaine
Cocaine is a crystalline tropane alkaloid that is obtained from the leaves of the coca plant. The name comes from "coca" in addition to the alkaloid suffix -ine, forming cocaine. It is a stimulant of the central nervous system, an appetite suppressant, and a topical anesthetic...
. Sigmund Freud
Sigmund Freud
Sigmund Freud , born Sigismund Schlomo Freud , was an Austrian neurologist who founded the discipline of psychoanalysis...
, author of Über Coca (1884), was an enthusiastic collaborator in Merck's coca research, though the methodological sophistication of his self-experimentation studies has been challenged.
Around World War I
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...
, Merck systematically patented many drugs including MDMA (ecstasy) and several of its analogues, though no uses for them were given. Attention was directed at vitamins as a new product
Product (business)
In general, the product is defined as a "thing produced by labor or effort" or the "result of an act or a process", and stems from the verb produce, from the Latin prōdūce ' lead or bring forth'. Since 1575, the word "product" has referred to anything produced...
category, and Vigantol was introduced in 1927, followed by Cebion in 1934.
Following the defeat of Germany in World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
, Merck was granted permission by the military government to produce drugs, pesticides, food preservatives, reagents, and fine chemicals for laboratory use. Soon afterwards the boom commonly known as the "Wirtschaftswunder
Wirtschaftswunder
The term describes the rapid reconstruction and development of the economies of West Germany and Austria after World War II . The expression was used by The Times in 1950...
" (economic miracle
Economic miracle
The terms "economic miracle", "economic boom", "tiger economy" or simply "miracle" have come to refer to great periods of change, particularly periods of dramatic economic growth, in the recent histories of a number of countries:-Post-World War II:...
) set in. For Merck this meant two-digit sales-growth figures for many years. Products of this time included corticoid preparations — for example Fortecortin
Dexamethasone
Dexamethasone is a potent synthetic member of the glucocorticoid class of steroid drugs. It acts as an anti-inflammatory and immunosuppressant...
, which is still used today — the cold remedy Nasivin or the hormone preparations Gestafortin and Menova.
The focus of Merck's current pharmaceutical R&D is on oncology
Oncology
Oncology is a branch of medicine that deals with cancer...
and cardio-metabolic care. In the former therapeutic area, its first marketed product is Erbitux (cetuximab
Cetuximab
Cetuximab is a chimeric monoclonal antibody, an epidermal growth factor receptor inhibitor, given by intravenous infusion for treatment of metastatic colorectal cancer and head and neck cancer.- Distribution :Cetuximab is manufactured and distributed in North America by ImClone and Bristol-Myers...
), for which it has marketing rights worldwide, apart from North America. (Cetuximab was discovered by Imclone Systems
ImClone Systems
ImClone Systems Incorporated is a biopharmaceutical company dedicated to developing biologic medicines in the area of oncology. It was founded in 1984 and is headquartered in New York City. On October 6, 2008, it accepted a $6.5 billion acquisition offer from Eli Lilly and Company, and became a...
, and is marketed in North America by Bristol-Myers Squibb
Bristol-Myers Squibb
Bristol-Myers Squibb , often referred to as BMS, is a pharmaceutical company, headquartered in New York City. The company was formed in 1989, following the merger of its predecessors Bristol-Myers and the Squibb Corporation...
.) Other products from Merck include Metformin
Metformin
Metformin is an oral antidiabetic drug in the biguanide class. It is the first-line drug of choice for the treatment of type 2 diabetes, in particular, in overweight and obese people and those with normal kidney function. Its use in gestational diabetes has been limited by safety concerns...
, Bisoprolol
Bisoprolol
Bisoprolol is a drug belonging to the group of beta blockers, a class of drugs used primarily in cardiovascular diseases. More specifically, it is a selective type β1 adrenergic receptor blocker. The FDA approved Duramed Pharmaceutical's application for Zebeta Oral Tablets as a new molecular...
, Levothyroxine
Levothyroxine
Levothyroxine, also L-thyroxine, synthetic T4, or 3,5,3',5'-tetraiodo-L-thyronine, is a synthetic form of thyroxine , used as a hormone replacement for patients with thyroid problems. The natural hormone is chemically in the chiral L-form, as is the pharmaceutical agent...
and Digitoxin
Digitoxin
Digitoxin is a cardiac glycoside. It has similar structure and effects to digoxin . Unlike digoxin , it is eliminated via the liver, so could be used in patients with poor or erratic kidney function. However, it is now rarely used in current Western medical practice...
.
Chemicals
In the chemicals sectorChemical industry
The chemical industry comprises the companies that produce industrial chemicals. Central to the modern world economy, it converts raw materials into more than 70,000 different products.-Products:...
, work started on effect pigments in 1957. An example for these pigments are alumina effect pigment
Alumina effect pigment
Alumina effect pigment are pearlescent pigments based on alumina .The most important class of special effect pigments today exists of natural mica platelets coated with thin films of transparent metal oxides like titanium oxide and iron oxide....
s sold under brand name Xirallic®. Ten years later the company initiated its involvement in liquid crystals, leading to its market leading role today. Liquid crystals account for the bulk of Merck's profits at present. Currently they're the world leader in producing liquid crystals for Flat-TV's and monitors.
In the area of analytical chemistry
Analytical chemistry
Analytical chemistry is the study of the separation, identification, and quantification of the chemical components of natural and artificial materials. Qualitative analysis gives an indication of the identity of the chemical species in the sample and quantitative analysis determines the amount of...
, Merck plays a leading role in the development of chromatographic
Chromatography
Chromatography is the collective term for a set of laboratory techniques for the separation of mixtures....
methods and materials.
Price fixing settlement
Generics UK (Merck's former British subsidiary, the global Generics business being sold on October 2nd, 2007) paid a £12m out-of-court settlement with the Department of Health over involvement in an alleged price and supply fixingPrice fixing
Price fixing is an agreement between participants on the same side in a market to buy or sell a product, service, or commodity only at a fixed price, or maintain the market conditions such that the price is maintained at a given level by controlling supply and demand...
cartel.
The NHS
National Health Service
The National Health Service is the shared name of three of the four publicly funded healthcare systems in the United Kingdom. They provide a comprehensive range of health services, the vast majority of which are free at the point of use to residents of the United Kingdom...
alleges various drugs companies exploited the oligopolistic market
Oligopoly
An oligopoly is a market form in which a market or industry is dominated by a small number of sellers . The word is derived, by analogy with "monopoly", from the Greek ὀλίγοι "few" + πόλειν "to sell". Because there are few sellers, each oligopolist is likely to be aware of the actions of the others...
conditions, forcing the NHS to pay inflated prices. NHS fraud investigators believe there was a conspiracy
Conspiracy (civil)
A civil conspiracy or collusion is an agreement between two or more parties to deprive a third party of legal rights or deceive a third party to obtain an illegal objective....
to limit the supply of 30 of its most commonly prescribed drugs, including a class of penicillin
Penicillin
Penicillin is a group of antibiotics derived from Penicillium fungi. They include penicillin G, procaine penicillin, benzathine penicillin, and penicillin V....
antibiotics and to a generic version of best-selling ulcer
Peptic ulcer
A peptic ulcer, also known as PUD or peptic ulcer disease, is the most common ulcer of an area of the gastrointestinal tract that is usually acidic and thus extremely painful. It is defined as mucosal erosions equal to or greater than 0.5 cm...
treatment Zantac. The NHS has so far filed claims in relation to just three drugs, seeking damages of more than £150m, while the Serious Fraud Office
Serious Fraud Office
The Serious Fraud Office may refer to:*Serious Fraud Office *Serious Fraud Office...
(SFO) is conducting a parallel investigation into the price-fixing allegations limited to the supply of blood-thinning pill warfarin
Warfarin
Warfarin is an anticoagulant. It is most likely to be the drug popularly referred to as a "blood thinner," yet this is a misnomer, since it does not affect the thickness or viscosity of blood...
and penicillin
Penicillin
Penicillin is a group of antibiotics derived from Penicillium fungi. They include penicillin G, procaine penicillin, benzathine penicillin, and penicillin V....
-based antibiotics. Homes and offices of executives
Senior management
Senior management, executive management, or management team is generally a team of individuals at the highest level of organizational management who have the day-to-day responsibilities of managing a company or corporation, they hold specific executive powers conferred onto them with and by...
at six firms, including Ranbaxy, Generics UK, Norton Healthcare
Norton Healthcare
Norton Healthcare is Kentucky's largest healthcare system with more than 40 locations in and around Louisville, Kentucky. Founded in 1886, Norton's current major products include pediatrics; women's services; orthopedics; cardiac care; stroke care; advanced surgical services; cancer diagnosis,...
, Goldshield and Regent-GM.were raided by the SFO in May 2002.
External links
- About Merck KGaA
- The early history of Ecstasy: Merck and MDMA
- EMD Chemicals, EMD Biosciences (Including Calbiochem, Novabiochem, and Novagen brands), and EMD Pharmaceuticals, Merck's North American affiliates
- http://www.sequant.com, SeQuant ZIC-HILIC technology