Merck aims to double sales in Africa to 500 million euros by 2020

German life sciences company Merck (MRK: DE) announced today that it plans to considerably expand its presence on the African continent over the next five years and is counting on the region’s entrepreneurial spirit and innovation power for growth.

“Merck is committed to supporting healthy families, healthy communities and healthy economies in Africa,” Karl-Ludwig Kley, chairman of the executive board and chief executive of Merck, said at a press conference in Johannesburg, South Africa, today, adding: “We intend to more than double our workforce in Africa and we also aim to more than double our sales on the continent by 2020.”

The company currently has around 400 employees across 10 African countries and aims to increase this number to around 1,000 by 2020. Merck’s largest location is South Africa, from where the company also steers business in South-East Africa including Kenya, Angola and Mozambique. Merck’s sales in Africa will climb to around 200 million euros ($215 million) in 2015 and are expected to reach 500 million euros by 2020.

Healthcare and Life Science

Merck’s growth strategy for Africa mainly includes its Healthcare and Life Science businesses. In Healthcare, 2016 will be a year of investment in selected African countries for Merck’s Consumer Health business, which comprises prescription-free over-the-counter pharmaceutical products. Among others, the company plans to market well-known brands such as Seven Seas, Femibion and Neurobion in Africa.

In Biopharma – also part of Healthcare – Merck is counting on its experience in markets with high-growth potential around the globe and intends to match the right products with healthcare needs in selected markets. One example is an agreement signed earlier this week for local production of Merck’s type 2 diabetes gold-standard treatment Glucophage (metformin) by the Algerian pharma company Novapharm Trading. Medicines produced at Novapharm are intended to address the needs of local markets. Glucophage generated third-quarter 2015 global sales of 103 million euros for Merck.