Memorandum 138
Submission from Merck
MERCK
Merck is a global pharmaceutical and chemical
enterprise with approximately 32,000 employees in around 60 countries
(as of June 30 2008).
Since going public in 1995, Merck's operating
activities are under the umbrella of Merck KGaA. Today, around
30% of the company's total capital is publicly traded, while the
Merck family owns an interest of about 70% via the general partner
E. Merck OHG.
With the acquisition of Serono, Merck became
one of the world's leading biotech companies.
Total revenues in 2007 amounted to €7.1
billion, adjusted for the disposal of Generics. Profit after tax
reached a record €3.5 billion as a result of the disposal.
Merck is the world's oldest pharmaceutical and
chemical company, with roots dating back to 1668. From the start
of industrial production in 1827 to first research on liquid crystals
more than 100 years ago up to our entry into targeted cancer therapy
with the launch of Erbitux® in 2003, many milestones provide
strong evidence of the pioneering spirit of the people at Merck.
PHARMACEUTICALS BUSINESS
SECTOR
Merck discovers, develops, manufactures and
markets innovative prescription drugs as well as over-the-counter
products.
Merck develop therapies for high unmet medical
needs. Through their targeted effect, these help patients to live
a longer and better life. Our over-the-counter products can prevent
disease and relieve minor complaints.
CHEMICALS BUSINESS
SECTOR
Merck offers a very wide range of specialty
chemicals for technologically sophisticated applications. Many
of these are contained in products that people encounter in everyday
life, such as mobile phones, televisions, automotive coatings
and cosmetics. Top quality, diversity and a customer-centric approach
to research and product development characterize the Chemicals
business.
LIQUID CRYSTALS
Close cooperation in development and production
of liquid crystals (LC) with the world's leading display manufacturers
has made Merck the number one company worldwide. All over the
world, liquid crystals from Merck are found inside most LCD televisions,
computer monitors, notebooks, digital cameras, mobile phones,
PDAs and MP3 players. In order to meet the growing demand, Merck
is investing in research for customized LC mixtures and OLEDs
(organic light-emitting diodes).
ORGANIC ELECTRONICS
Following the success model of liquid crystals,
Merck is developing future businesses for the liquid crystal division.
Among others, Merck's research and development centre in Southampton,
which is a part of Merck Chemicals Limited, is dedicated to future
materials business in the field of optics and electronics. One
key area is the emerging technology of organic electronics, where
the operations in Southampton focus on the development of materials
for organic photovoltaics and organic transistors for flexible
displays.
Merck's Southampton site is profiting from a
vivid UK university network, which can be considered as one of
the leading countries academic framework in Europe in organic
electronics.
A number of key players in the field did emerge
from UK, like the company Plastic Logic, being spun off from Cambridge
University and now in preparation to manufacture flexible displays
in Dresden, Germany.
The overall potential of organic electronics
is still to be explored and developed. One of the challenges will
be to merge existing competencies of microelectronics, the classical
printing industry, organic chemistry and other fields, which in
established industries do not interact on a regular basis.
This might require flexible and open-minded
engineers, which could be fostered in highly interdisciplinary
education and training programs already. This could be driven
both by university but also by on-the-job programs.
From a value generation point of view, UK currently
appears to play a more active role in generating intellectual
property and services, than in seriously preparing for manufacturing
or assembly of final products.
With major display companies already established
in Asia for decades, it might require massive political efforts
to create a favourable manufacturing environment for organic electronics
products in UK. Major interest of established manufacturing companies
in UK is currently not visible in UK but also not too pronounced
in the EU in general. The main driving forces in first manufacturing
moves appear rather to be small companies from a start-up environment.
Bigger companies involved in the field are chemicals companies
like Merck and other big chemicals players in Europe and Asia.
It might be worth considering how established
engineering and manufacturing enterprises could be attracted further
to the exciting area of organic electronics, for example by shared
risk programs supported by public programs.
From a general society point of view, the overall
industry could be supported from the Government to prepare general
acceptance of the field but also to avoid adverse reactions and
to create awareness and understanding, which is key for new technologies.
The ecological aspect of the technology, especially of organic
photovoltaics is to our knowledge currently almost not present
at all in public discussions in the UK.
October 2003
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