Merck Counts on Africa
Aim is to more than double sales in Africa to about € 500 million by 2020
Merck announced 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 Officer of Merck, said at a press conference in Johannesburg. “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 ten 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 in 2015 and are expected to reach € 500 million by 2020.
Merck has delivered healthcare services in Africa since 1897. With a population rising faster than in any other global market and a growing middle class, the company is increasingly tapping into the continent’s innovative spirit to create health awareness and help respond to unmet medical needs. The Group’s Executive Board visited ten African countries to underscore its commitment to and growing importance of the continent. Among other things, Merck announced plans to start local production of the diabetes treatment Glucophage in Algeria, inaugurated an office in Nigeria, and launched the sale of its Muse® cell analyzer, used to detect HIV.
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 for local production of Merck’s type 2 diabetes gold-standard treatment Glucophage by the Algerian pharma company Novapharm. Medicines produced at Novapharm are intended to address the needs of local markets.
In Life Science, Merck intends to expand its presence in Nigeria, Kenya, Algeria, and Angola. This business offers a range of more than 300,000 products globally to help facilitate life science research and pharmaceutical production by clients in academia and industry.
Merck is also embracing local innovations to help people in Africa. One example is its joint campaign DORA (Diabetes Online Risk Assessment) with pharmacists and external diabetes management partners for the early detection of diabetes.
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