Merck KGaA may look to biosimilars and acquisitions for growth

German pharma and chemical major Merck KGaA (MRK: DE) has said it is planning to invest in innovations to ensure operational growth in 2014 and the years to come.

"2013 was an excellent year for Merck - all four divisions were successful," said executive board chairman Karl-Ludwig Kley at the Annual General Meeting in Frankfurt. "As part of our ‘Fit for 2018’ transformation and growth program the focus of the next two years will be on growth. We are aiming for both organic and inorganic growth," he adding, noting: "We are able to take ambitious steps. We can afford investments and acquisitions,"

To accomplish this, in-licensing agreements in pharmaceuticals and planned investments of around 100 million euros ($138 million) in the biosimilars business are just as feasible as acquisitions. The $2.6 billion acquisition of the UK-based high-tech material producer AZ Electronic Materials, which was completed last week, is a first step here, according to Mr Kley.