Merck KGaA plans big boost to pharma R&D pipeline spend

11 December 2015

German life sciences and pharma group Merck (MRK: DE) yesterday informed analysts and investors at its 2015 Capital Market Day about the strategic priorities that will influence its operating result in 2016. The integration of Sigma-Aldrich as well as the further development of the pharmaceutical pipeline are at the top of the list.

Apart from the expected organic growth of net sales, to which all business sectors are expected to contribute, the acquisition of Sigma-Aldrich will have a positive impact on the operating result before exceptionals (EBITDA pre) next year. This includes expected cost synergies of 90 million euros ($98.5 million). At the same time, Merck is planning additional investments of around 250 million euros in its pharmaceutical pipeline. In November, the company had forecast EBITDA pre of between 3.58 billion and 3.65 billion euros for 2015.

Further development of the pharma pipeline

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