GERMANY – Merck KGaA has announced that it will reconsider potential larger-scale acquisitions next year, in addition to in-licensing and bolt-on purchases, to support its growth, FirstWord Pharma reports.

Merck KGaA has been heavily investing in its biopharma business as part of an effort to increase global revenues to 25 billion euros (US$24.7 billion) by 2025. Beginning next year, its expansion strategy may include M&A.

Merck generated total sales of 19.7 billion euros (US$19.5 billion) last year, which it hopes to increase by more than 1 billion euros (US$988 million) per year to around 25 billion euros (US$24.7 billion) in 2025.

The group’s most recent major takeover was that of Versum Materials, a maker of chemicals for semiconductor production, for 5.8 billion euros (US$5.7 billion) in 2019.

After reducing debt, the company stated that it is now approaching financial capacity for deals ranging from 15 billion euros (US$14.8 billion) to 20 billion euros (US$19.8 billion).

Merck CEO Belén Garijo said, “We remain fully on track to meet our mid-term growth target,” adding, “I can say with confidence that our highly resilient business sectors are the foundation for our bold plans to accelerate efficient growth.”

Merck KGaA has been investing in its life science arm MilliporeSigma for some time, most recently with the opening of a new facility in France.

The move coincides with the company’s five-year goal of increasing sales from 19.7 billion euros (US$19.5 billion) in 2021 to 25 billion euros (US$24.7 billion) by 2025.

Aside from the French investment, Merck KGaA’s MilliporeSigma opened a US$65 million high-potency active pharmaceutical ingredient site in Wisconsin in June.

The company announced a 440-million-euro (US$431.5 million) investment in Ireland in May.

Healthcare to grow in mid-single-digits

Merck also reaffirmed its healthcare unit’s mid-term forecast, with average annual organic sales growth in the mid-single-digit percentage range.

Along with established products, new medicines and potential market launches, such as evobrutinib for multiple sclerosis and xevinapant for head and neck cancer, are expected to drive division growth.

The company is also investing in its manufacturing capabilities, opening a viral clearance laboratory last month as part of the first phase of its new 29 million euros (US$26.6 million) biologics testing center in Shanghai.

Meanwhile, construction on a 200 million euros (US$198 million) translational science center and a 160 million euros (US$158 million) launch and technology center has begun in Germany.

Liked this article? Sign up to receive our regular email newsletters, focused on Africa and World’s healthcare industry, directly into your inbox. SUBSCRIBE HERE