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Merck Group
Merck Group
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The Merck Group, branded and commonly known as Merck, is a German multinational science and technology company headquartered in Darmstadt, with about 60,000 employees and a presence in 66 countries. The group includes around 250 companies; the main company is Merck KGaA in Germany. The company is divided into three business lines: Healthcare, Life Sciences and Electronics. Merck was founded in 1668 and is the world's oldest operating chemical and pharmaceutical company, as well as one of the largest pharmaceutical companies globally.[6][7]

Key Information

Merck operates in Europe, Africa, Asia, Oceania and the Americas. It has major research and development centres in Darmstadt, Boston, Tokyo and Beijing, as well as other Research and Development units in Taiwan, France, Israel, South Korea, India, and the UK.[8] Merck pioneered the commercial manufacture of morphine in the 19th century and for a time held a virtual monopoly on cocaine.

Merck was privately owned until going public on the Frankfurt Stock Exchange in 1995 and is listed on the DAX index of Germany's top companies. The Merck family still controls a majority of 70.3% of the company's shares. The Merck Group includes around 250 companies in 180 countries; the current main parent company of the group, since 1995, is named Merck KGaA, and is itself mainly owned by the former main parent company, E. Merck oHG, which now operates as a holding company.

The American pharmaceutical company Merck & Co. was established as a subsidiary of Merck in 1891, but was nationalized by the United States in 1917, before being privatized again when George W. Merck, a member of an American branch of the Merck family, repurchased the stock in 1919.[9] It is known as MSD (Merck Sharp and Dohme) outside of North America. The original Merck of Darmstadt holds the rights to the name Merck in all countries except the U.S. and Canada, where it is known as EMD (Emanuel Merck, Darmstadt), and the life science business specifically is known as MilliporeSigma. In 2015 Merck adopted a uniform brand identity for all its subsidiaries, and the company has stressed its intention to protect the brand of "the real Merck" globally and initiated litigation against its former subsidiary over use of the name.[10]

In 2018, the company celebrated their 350th anniversary.[11] Merck has formed a strategic alliance with the Technische Universität Darmstadt, which is located in the same town as Merck.[12]

History

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Origins and confiscation

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The Angel Pharmacy in Darmstadt which was owned by the Merck family from 1668; the beginning of the Merck company

The roots of Merck reach back as far as the 17th century in the Landgraviate of Hesse-Darmstadt (now a part of Germany). In 1668, Friedrich Jacob Merck, an apothecary, assumed ownership of the Engel-Apotheke (lit.'Angel Pharmacy') in Darmstadt.[citation needed]

In 1816, Emanuel Merck, a descendant of the original founder, took over the pharmacy. Thanks to his scientific education he was successful in isolating and characterizing several different alkaloids in the pharmacy's laboratory, and by doing so also invented a number of drugs. He began the manufacture of these substances "in bulk" in 1827, touting them as a "Cabinet of Pharmaceutical and Chemical Innovations". He and his successors gradually built up a chemical-pharmaceutical factory that produced — in addition to raw materials for pharmaceutical preparations — a multitude of other chemicals and (from 1890) medicines.[13]

In 1891, Georg(e) Merck established himself in the United States and set up Merck & Co. with Theodore Weicker in New York. Merck & Co. was confiscated following the First World War and set up as an independent company in the United States.[14][15] Today, the US company, which operates as Merck Sharp and Dohme (MSD) outside the U.S. and Canada, has about 68,000 employees (December 2021) in 120 countries. It is one of the top 5 pharmaceutical companies worldwide, larger than its German ancestor, which employs 60,334 people in 67 countries (December 2021). While Merck in Darmstadt is the legal successor of the original Merck and retains the rights to the name "Merck" in all countries except the U.S. and Canada, it is sometimes known as the "German Merck" or "Merck Darmstadt" in North America. The company was formerly also referred to as "E. Merck" (Emanuel Merck).[citation needed]

20th century activities

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Nazi years

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In the years of the Nazi rule, the company was led by Karl Emanuel Merck who became a member of the Nazi Party in 1933 and subsequently received the title of Wehrwirtschaftsführer. In addition, Merck was president of the Hessian Chamber of Commerce and Industry as well as performing an advisory function in the Expert Advisory Council for National Health ("Sachverständigenrat für Volksgesundheit") of the Nazi Party.[16] During World War II, Merck was manufacturing war essential products such as narcotics, vitamins, biocides and other chemicals. According to the company's account, 265 forced laborers were working in the plant in Darmstadt, most of them women from Russia and Poland.[17] Additionally, several hundred Fremdarbeiter ("foreign workers") from France and Belgium were employed throughout the war years. An air raid on 12 December 1944 destroyed nearly 70 percent of the plant and killed 55 employees.[18]

Post-war

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In 1973, Merck Ltd. acquired BDH Chemicals[19] from the Glaxo Group.

Merck visitor centre in Darmstadt, which stood from the early 1980s to around 2015

In the early 1980s Merck Group built a visitor center at its Darmstadt headquarters that featured a pyramid.[citation needed]

Merck was legally named E. Merck oHG until 1995. In 1995 it was listed on the Frankfurt Stock Exchange and became a KGaA, legally named Merck KGaA.[citation needed]

2000 to 2009

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On 13 March 2006, Merck announced a takeover bid for Schering AG, the world's largest producer of oral contraceptives. On 23 March 2006, Bayer AG made a supported offer for Schering and Merck decided to drop out of the bidding for the company.[20] Schering is not to be confused with Schering-Plough which was once part of Schering AG but was acquired by Merck & Co. in 2009. In September 2006 the company announced a takeover bid of $13.2 billion for Serono SA, Switzerland's largest biotech firm. The deal included a buy-out of the Bertarelli family's 64.5% stake in Serono to be followed by a public tender offer for the remaining shares starting in November 2006.[21][22] The combined company has an R&D budget of approximately $1.1 billion and sales of approximately $4.6 billion. Its approximately $2 billion in sales of biologics would make it seventh among pharmaceutical/biotech companies. The new entity, Merck Serono, began operations in 2007.

Merck KGaA established its philanthropic foundation in 2008 called Merck Foundation. Rasha Kelej currently serves as its CEO.[23][24]

2010 onwards

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Merck chemical production plant in Gernsheim

In 2010, Merck took over Billerica (MA) based Millipore Corporation for EUR 5.3 billion (US$7.2 billion).[25][26] It is now Merck's life science business unit. With the acquisition of Millipore, Merck is consolidating its US holdings and shutting down the Gibbstown facility and warehouse. Gibbstown operations will be transferred to the new Philadelphia office and Millipore headquarters.[27]

Merck Korea received the "Leading Investor Award" at the 5th Korea-EU Industrial Cooperation Day in 2011.[citation needed]

In December 2013, the company bought AZ Electronic Materials SA (AZEM) for about $2.6 billion in cash to increase its offering of specialty chemicals to the electronics industry.[28]

In September 2014 Merck halted the clinical development of two drug candidates in development with Oxygen Biotherapeutics. One drug candidate suffered a lack of success in patient recruitment, with its MUC1 antigen-specific cancer immunotherapy drug, tecemotide (L-BLP25), missing its Phase I/II endpoint of increasing overall survival in patients with Stage III non-small cell lung cancer.[29] Later in September it was announced that the company would acquire Sigma-Aldrich for $17 billion.[30] After the acquisition was completed in 2015, Merck had around 50,000 employees.[31] In November 2014, Merck and Pfizer agreed a deal for the latter to sell the former sharing rights to develop an experimental immunotherapy drug for a fee of $850 million.[32]

In October 2015, Merck revealed it would return the rights of the Kuvan drug to BioMarin Pharmaceutical Inc. The drug is effective in the treatment of the rare genetic disorder PKU, however Merck is moving away from genetics into cancer treatment, immunology and neurology.[33] In October, it was announced that Karl-Ludwig Kley, CEO of Merck since April 2007, would retire in April 2016, and be succeeded by Stefan Oschmann, who has been a member of the executive board since 2011.[34] The company started building new facilities for its R&D operations and a new visitor center at its Darmstadt site in the early 2010s. By 2015 the site's pyramid had been torn down as part of the renovations.[35]

Merck headquarters in Darmstadt

In April 2017, the company announced it had completed the acquisition of food safety testing company, BioControl Systems Inc.[36] In August of the same year the company announced the acquisition of Natrix Separations for an undisclosed sum.[37]

In April 2019, Merck announced it would acquire Versum Materials.[38] The acquisition was completed in October 2019 and represented an equity value of about U$5.8 billion.[39] In the same year, Merck has also announced the acquisition of Intermolecular Inc, the California-based company for advanced materials. The acquisition was completed in September 2019 and represented an equity value of U$62 million.[40]

In February 2020, Merck announced the divestment of its Allergopharma Business to Dermapharm, under an unspecified fee. The deal includes Merck's Portfolio in Europe and parts of Asia, including China and India.[41]

In January 2021, MilliporeSigma announced it would acquire AmpTec to expand and enhance the businesses mRNA vaccine capabilities as well as its treatment and diagnostics offerings.[42] In March, its Performance Materials division changed name to Electronics division.[43] In December of the same year, EMD Serono (Merck Group operations in the US and Canada) announced it would acquire Swiss-based Chord Therapeutics and its lead drug cladribine, used in generalised myasthenia gravis and neuromyelitis optica spectrum disorder.[44]

Merck consumer-health

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In September 2017, Merck said it is considering options for its consumer-health division, including a potential full or partial sale, or strategic partnership. An equity analyst estimated the unit could command a purchase price of €1.8 billion to €2.7 billion from a full sale.[45] In December Reuters reported that both Nestlé and private equity owners of Stada[46] were preparing bids for Merck's consumer health group. Days later, Reuters again reported that Perrigo was also preparing a bid for the division in the region of €4 billion ($4.7 billion to $4.8 billion).[47] In April 2018, Reuters reported that generic drug manufacturer, Mylan was in advanced discussions to acquire the consumer health business for between €3.5–4 billion (£3–3.4 billion).[48] Later in the month, Reuters reported that Procter & Gamble would purchase the division for €3.4 billion euros (£2.96 billion; $4.2 billion).[49]

Name

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Seventh and former logo of Merck KGaA used from 1 October 2001 until 13 October 2015. This form was used internationally; in U.S. and Canada its design was similar but reading "EMD" instead of "Merck".

Merck in Darmstadt is the sole legal successor of the original Merck and retains the rights to the trademark "Merck" in all countries except the U.S. and Canada, where "EMD" brand is mostly used (it was introduced alongside Merck's 2001 logo[50]). In recent branding campaigns, the company has referred to itself as "the original Merck" and "the real Merck". The company was legally known as E. Merck oHG until 1995, when Merck KGaA became the main parent company and the former a holding company. Both oHG and KGaA are generic business entity type designations and not used in everyday speech or branding.[citation needed]

In 2015 Merck adopted a new logo to increase the visual differences between both companies, while also visualizing "vibrant science and technology" as the new company's brand.[51] It has initiated litigation in several countries against its former subsidiary Merck & Co. (MSD) over infringing use of the Merck name. In 2016, the High Court of Justice in the United Kingdom ruled that MSD had breached an agreement with its former parent company and that only Merck of Darmstadt is entitled to use the Merck name in the United Kingdom; the judge also held that MSD's use of "Merck" as part of branding on its global websites were directed to the UK and infringed Merck's trade mark rights in the UK.[52] In response, MSD has initiated counter-litigation in the United States.[53]

After those controversies, Merck also adopted a new logo for EMD. The same look was also given to the logos of EMD Serono, MilliporeSigma, and EMD Performance Materials (renamed EMD Electronics in March 2021) divisions. Its corporate website is merckgroup.com in the world excluding U.S. and Canada, displaying normal Merck logo in the header, and emdgroup.com in U.S. and Canada, displaying use of its corporate name, Merck KGaA, Darmstadt, Germany, in the header and additionally displaying a disclaimer about trademark ownership in the footer.[citation needed]

On 7 December 2021, Merck, which uses the name EMD Electronics in North America, announced they would be investing $1 billion in a U.S. operations joint venture with Palantir Technologies to assist in solving some of the chip industries supply chain problems. The plan is for sites in Pennsylvania, Texas, California, and Arizona.[54]

Price fixing settlement

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Generics UK (Merck's former British subsidiary, the global Generics business being sold on 2 October 2007) paid a £12M out-of-court settlement with the Department of Health and Social Care of the UK over involvement in an alleged price and supply fixing cartel.[55]

The NHS alleges various drugs companies exploited the oligopolistic market conditions, forcing the NHS to pay inflated prices. NHS fraud investigators believe there was a conspiracy to limit the supply of 30 of its most commonly prescribed drugs, including a class of penicillin antibiotics and to a generic version of best-selling ulcer treatment Zantac.[56] The NHS has so far filed claims in relation to just three drugs, seeking damages of more than £150m, while the Serious Fraud Office (SFO) is conducting a parallel investigation into the price-fixing allegations limited to the supply of blood-thinning pill warfarin and penicillin-based antibiotics. Homes and offices of executives at six firms, including Ranbaxy, Generics UK, Norton Healthcare, Goldshield and Regent-GM were raided by the SFO in May 2002.[citation needed]

Acquisition history

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The following is an illustration of the company's mergers, acquisitions, spin-offs and historical predecessors:

  • Merck Group
    • MilliporeSigma
      • Merck Millipore
        • Merck Serono
          • Merck (Founded 1668 by Jacob Friedrich Merck)
          • Serono (Acq 2006)
        • Millipore Corporation (Acq 2010)
          • Waters Associates Inc (Acq 1979)
          • Waters Chromatography Division (Sold 1994)
          • Amicon Separation Sciences (Acq 1996)
          • Tylan General (Acq 1997)
          • Bioprocessing Ltd (Acq 1999)
          • Microelectronics Division (Spun off 2001 as Mykrolis)
          • MicroSafe (Acq 2005)
          • NovAseptic (Acq 2005)
          • Newport Bio Systems (Acq 2006)
          • Serologicals Corporation (Acq 2006)
          • Guava Technologies (Acq 2009)
          • BioAnaLab (Acq 2009)
        • AZ Electronic Materials (Acq 2013)
      • Sigma-Aldrich (Acq 2014)
        • Sigma-Aldrich Corporation
          • Aldrich Chemical Co. (Merged 1975)
          • Sigma International Ltd (Merged 1975)
        • Ultrafine (Acq 2004)
        • JRH Biosciences (Acq 2005)
        • Proligo Group (Acq 2005)
        • Beijing Superior Chemicals and Instruments Co (Acq 2006)
        • Iropharm (Acq 2006)
        • Pharmorphix Ltd (Acq 2006)
        • Advanced Separation Technologies (Acq 2006)
        • Epichem Group Ltd (Acq 2007)
        • Molecular Medicine BioServices (Acq 2007)
        • BioReliance (Acq 2012)
      • BioControl Systems Inc. (Acq 2017)
      • Natrix Separations (Acq 2017)
      • AmpTec (Acq 2021)
      • Erbi Biosystems (Acq 2022)
      • Mirus Bio (Acq 2024)
    • Versum Materials (Acq 2019)
      • Dynaloy (Acq 2017)
    • Intermolecular Inc (Acq 2019)
    • Chord Therapeutics (Acq 2021)

Controversies

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Merck KGaA has faced criticism for continuing its business operations in Russia following the country's invasion of Ukraine. Despite international sanctions and pressure on companies to exit the Russian market, Merck KGaA has maintained its presence, citing commitments to supplying essential medicines. This decision has sparked backlash from activists and organizations advocating for corporate responsibility in geopolitical conflicts.[57]

Healthcare

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After Wilhelm Adam Sertürner's isolation of morphine from opium in 1805, Merck pioneered (from 1827) the commercial manufacture of morphine for an expanding global market. From 1884 onwards, Merck also played role in the production and marketing of cocaine. Sigmund Freud, author of Über Coca (1884), was an enthusiastic collaborator in Merck's cocaine research, though the methodological sophistication of his self-experimentation studies has been challenged. Attention was directed at vitamins as a new product category, and Vigantol was introduced in 1927, followed by Cebion in 1934.[citation needed]

Following the defeat of Germany in World War II, Merck was granted permission by the military government to produce drugs, pesticides, food preservatives, reagents, and fine chemicals for laboratory use. Soon afterward the boom that is commonly known as the "Wirtschaftswunder" (economic miracle) set in. For Merck, this meant two-digit sales-growth figures for many years. Products of this time included corticoid preparations — for example Fortecortin, which is still used today — the cold remedy Nasivin or the hormone preparations Gestafortin and Mantova.[citation needed]

Merck currently employs over 2,500 people in its 4 R&D hubs via. Boston, Darmstadt, Beijing and Tokyo.[58][59] In the year 2018, Merck invested over €1,6 billion in its R&D operations.[60] The focus of Merck's current pharmaceutical R&D is on oncology, neurology and immunology. In oncology, its first marketed product is Erbitux (cetuximab), for which it has marketing rights worldwide, apart from North America.[61] (Cetuximab was discovered by Imclone Systems, and is marketed in North America by Bristol-Myers Squibb.) Other areas of Expertise from Merck Healthcare include Fertility, Endocrinology and General Medicine, the later focusing on treatments for Diabetes, Thyroid disease and Cardiovascular diseases. Some products from Merck include Metformin, Bisoprolol, Levothyroxine and Digitoxin. Merck's clinical research strategy consists of a partnership with Quintiles in which the latter helps the former in the clinical development of all its compounds.[62] In February 2019, Merck also announced a partnership with GSK to develop and commercialize M7824 (bintrafusp alfa*), a new Immunotherapy with potential in various difficult-to-treat cancers.[63] In 2020, Merck launched partnership with Pechoin in China to develop "high-tech herbal" skincare products.[64]

Life science

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The life science business of Merck, formerly known as Merck Millipore, was created in July 2010 following the completed acquisition of the US company Millipore. This division comprised all Millipore activities and major segments of the former Merck division Performance & Life Science Chemicals.[65]

In 2015, Merck acquired Sigma-Aldrich and combined it with Merck Millipore.[66] The company was branded Merck globally and MilliporeSigma in the United States and Canada[67] The science business of Merck/MilliporeSigma has 300,000 products and three business units: Life Science Services, Science & Lab Solutions, and Process Solutions. The Life Science Services include the Contract Development and Manufacturing Organization (CDMO) and contract testing services. Science & Lab Solutions includes products for Laboratories and Quality Control organizations. Process Solutions supports the biopharma manufacturing processes of its clients with single-use products.[68] The company has products organized under the brands Sigma-Aldrich, Millipore, SAFC, Supelco, Milli-Q, and Bioreliance.[69] The company serves customers in biotech, pharma, diagnostics, food safety, academia, and environmental. Jean-Charles Wirth serves as the CEO of the life science business of Merck.[70]

The Life Science business sponsors several award programs for graduate students. One of these awards, the Alfred R. Bader Award for Student Innovation recognizes advanced chemistry graduate students, typically in the field of synthetic organic chemistry.[citation needed]

Electronics

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Semiconductors

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Semiconductor Solutions is the largest business unit within Merck's Electronics business sector. It provides materials, delivery systems, and services for the semiconductor industry. The business unit supplies products for every major production step in the wafer processing, including doping, lithography, patterning, deposition, planarization, etching, and cleaning. After the acquisition of Intermolecular, its capabilities allow material combinations to be tested directly in the specific application environment accelerating learning cycles. Since the acquisition of Versum and Intermolecular, inc., the company's portfolio in electronic materials was significantly expanded. The launch of the integrated organization was done on 1 June 2020.[citation needed]

Pigments and cosmetics

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Merck started working on effect pigments in 1957. The business unit is called Surface Solutions. The core markets for Surface Solutions are automotive coatings, cosmetics, and, to a smaller extent, industrials. An example of its pigments is alumina effect pigments sold under the brand name Xirallic. Currently, this business unit pools all activities for pigments in lacquering, printing, and plastic applications, in the field of security technology (for instance counterfeiting protection), pigments for applications in the food and pharmaceutical areas, functional materials, and active substances and pigments for cosmetics.[citation needed]

M Ventures

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M Ventures is a venture capital fund of Merck. In 2021, the funds available for investment were increased by Eur 600M to enable investments Biotechnology and Technology.[71]

Emanuel Merck Lectureship award

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The award was jointly established by Merck and the Technische Universität Darmstadt in 1992. It recognizes scientists who have made contributions to chemical and pharmaceutical research.[72]

Heinrich Emanuel Merck Award

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The award was established in 1988 to recognize novel methods in analytical chemistry. Since 2025, the scope of the award has been broadened to encompass innovation in the computational sciences.[73]

Future Insight Prize

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During the company's 350th anniversary in 2018, Merck announced the Future Insight Prize. The prize consists of a research grant of €1,000,000 ($1.1 million) every year through the next 35 years, to motivate innovation in areas that could solve humanity's most pressing issues.[74]

References

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[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia
from Grokipedia
Merck KGaA, known internationally as the Merck Group (and as EMD Group in North America to distinguish from the unrelated Merck & Co.), is a German multinational science and technology company headquartered in Darmstadt, Germany, focused on healthcare, life sciences, and electronics. Founded in 1668 as an apothecary shop by Friedrich Jacob Merck, it is the world's oldest continuously operating pharmaceutical and chemical enterprise. The company employs around 62,600 people and maintains operations in 65 countries, emphasizing research-driven innovation across its sectors to address global challenges in medicine, biotechnology, and advanced materials. In its Healthcare sector, Merck develops therapies targeting unmet needs in , , and , including oncology drugs like Mavenclad for and Tepmetko for . The Life Science division supplies tools, bioprocessing solutions, and for and , supporting the global biopharma industry. Electronics provides specialty chemicals and materials essential for semiconductors, liquid crystals in displays, and OLED technologies, contributing to advancements in and computing. Merck reported net sales of €21.2 billion in , with growth across all sectors driven by operational efficiencies and strategic investments in R&D exceeding €3 billion annually. Historically, Merck's adaptability—from early chemical exports in the to pioneering production and insulin synthesis in the 20th—has defined its resilience amid geopolitical disruptions, including separations that led to the independent U.S. entity. Today, as a DAX-listed firm with majority family ownership, it balances public market demands with long-term scientific pursuits, though it faces typical industry pressures like patent expirations and regulatory scrutiny without notable recent scandals in financial disclosures.

Company Overview


Merck KGaA, operating as the , traces its origins to 1668, when established the Engel-Apotheke in , . This served as the foundation for what became the world's oldest continuously operating chemical and pharmaceutical company. Initially focused on compounding and dispensing medicines, the business expanded under subsequent family generations, transitioning from retail operations to industrial-scale production of chemicals and pharmaceuticals by the early .
The company's legal form as a auf Aktien (KGaA)—a hybrid structure combining elements of a and a public corporation—was formalized to balance family control with access to public capital markets. In this setup, E. Merck KG, the entity representing the Merck family's interests, functions as the general partner with unlimited liability and holds approximately 70.3% of the total capital, granting it decisive influence over strategic decisions despite bearing full responsibility for obligations. The remaining 29.7% consists of bearer shares traded publicly on the , enabling broader investor participation without diluting family dominance. This KGaA structure, unique under German law, has preserved the founding family's majority ownership across 13 generations, fostering long-term orientation over short-term shareholder pressures. Headquartered in since inception, Merck KGaA maintains its registered office there, with the general partners' authority outlined in the company's to ensure continuity of family .

Global Operations and Workforce

Merck KGaA maintains a global footprint spanning 65 countries, with operations in approximately 150 locations and regions across all continents. Its network includes centers, production facilities, sales offices, and innovation hubs, primarily supporting the healthcare, life science, and electronics sectors. Key regions of activity encompass (with headquarters in , ), (including sites in the United States and ), , , the , and . The company's international operations facilitate the development and distribution of pharmaceuticals, bioprocessing tools, and , with manufacturing sites optimized for regional supply chains and regulatory compliance. For instance, North American facilities in locations such as , Carlsbad, and San Jose handle corporate functions, production, and R&D innovation. In , hosts multiple core sites for global R&D and production, contributing to the company's emphasis on cross-border collaboration in addressing challenges like chronic diseases and sustainable technologies. As of December 31, 2024, Merck employed 62,557 full-time equivalents worldwide, down slightly from 62,908 at the end of 2023, reflecting ongoing operational efficiencies. The workforce is distributed across the three business sectors, with employees engaged in scientific discovery, , and commercial activities; specific regional breakdowns indicate a concentration in and , though exact figures vary by year and exclude recent acquisitions like HUB Organoids Holding B.V. This global team enables Merck to serve diverse markets while adhering to local labor standards, including collective agreements covering portions of its German and international staff.

Financial Performance and Strategy

In fiscal year 2024, the Merck Group achieved net sales of €21.2 billion, marking an organic increase of 2.0% from €21.0 billion in 2023, driven by contributions across its Healthcare, Life Science, and Electronics sectors despite macroeconomic headwinds and currency fluctuations. EBITDA pre rose to €6.1 billion, reflecting organic growth of 6.9%, supported by operational efficiencies and higher-margin products in biopharmaceutical tools and oncology therapeutics. Net income attributable to shareholders stood at €2.78 billion, down 1.7% year-over-year, influenced by increased R&D investments and one-time restructuring costs, though free cash flow improved to €2.4 billion. The company's balance sheet remained robust, with net financial debt reduced to €9.5 billion and a dividend payout of €2.20 per share proposed for 2024.
Key Financial Metrics (FY 2024 vs. FY 2023)FY 2024FY 2023Change (Organic)
Net Sales (€ billion)21.221.0+2.0%
EBITDA pre (€ billion)6.15.9+6.9%
(€ billion)2.782.83-1.7%
Merck's emphasizes sustainable profitable growth through its diversified portfolio of three core sectors, prioritizing in high-growth areas such as , , and materials while leveraging and strategic acquisitions. The updated strategic framework, outlined in the 2024 , focuses on enhancing value creation by concentrating resources on academic, biotech, and pharmaceutical customers in Life Science; expanding Healthcare franchises like Mavenclad and Bavencio; and advancing Electronics' display and solutions amid optimizations. This approach targets mid-single-digit organic sales growth and EBITDA pre margins above 28% over the medium term, underpinned by €3.5 billion in annual R&D spend and a commitment to operational resilience against geopolitical risks. Merck maintains a disciplined capital allocation , balancing reinvestments, share buybacks, and dividends, with over 80% of sales derived from international markets to mitigate regional volatility.

Historical Development

Origins and Early Expansion (1668–1914)

The Merck Group traces its origins to 1668, when Friedrich Jacob Merck acquired the Engel Apotheke, or Angel Pharmacy, in , . On August 26 of that year, Ludwig VI of Hesse-Darmstadt granted him a to operate the , establishing the foundation for what would become the world's oldest pharmaceutical and chemical . The business operated as a traditional , dispensing medicines and chemicals, and remained under family ownership, passing through successive generations of the . In the early 19th century, under Heinrich Emanuel Merck (1774–1855), a great-great-grandson of the founder, the company began transitioning from retail pharmacy to industrial production. In 1827, Emanuel Merck initiated the large-scale isolation and characterization of alkaloids, introducing a "Cabinet of Pharmaceutical and Chemical Innovations" that included high-purity substances such as , for which the firm became a pioneering commercial producer. This shift marked the start of Merck's research-driven approach, with exports of these products driving early growth; by the 1830s, the company supplied alkaloids to chemists and physicians across . To secure continuity, Emanuel established the partnership E. Merck with his sons in 1856. Merck's expansion accelerated in the mid-19th century through international trade, with documented business contacts to in 1832 and in 1845, enabling the firm to reach customers on every by the century's end. Facilities in expanded for high-purity chemical production, though urban growth limited further site development by the late 1800s. The company established its first foreign subsidiary in New York in 1888, followed by one in in 1891, facilitating direct distribution of Darmstadt-produced pharmaceuticals and chemicals. By 1914, Merck had evolved into a significant industrial entity, specializing in alkaloids and fine chemicals, with the "Camomile Man" symbol—originating from a 1741 family gravestone—adopted as a in the 19th century to signify quality.

World War I, Confiscation, and Interwar Period

During World War I, E. Merck of Darmstadt faced severe setbacks as its international subsidiaries were treated as enemy property by Allied nations. The most significant loss was its U.S. branch, established in 1891 to distribute fine chemicals, which was confiscated by the U.S. government in 1917 under the Trading with the Enemy Act following America's entry into the war; this subsidiary was subsequently reorganized as the independent Merck & Co. in 1919. Similar expropriations occurred in other countries, stripping the company of all foreign assets and severely curtailing its export revenues, which had been vital to its pre-war growth. The war's economic fallout, compounded by Germany's postwar and reparations, prompted internal cost-cutting measures at E. Merck, including staff reductions amid a broader European crisis. Despite these challenges, the firm preserved its core research capabilities in , continuing production of pharmaceuticals and chemicals essential to the domestic market. In the interwar years, E. Merck prioritized recovery and innovation within while cautiously rebuilding international ties. It advanced processes, such as shifting to tablet-form for medicines, which enhanced and market appeal. Limited cooperation emerged with the former U.S. affiliate, involving technology transfers and shared know-how on pharmaceuticals, despite formal separation. By the late , diversification efforts included non-pharma products like derivatives, and in 1930, the company established Merck-Mexico S.A. as a foothold for re-entry into foreign markets; transitioned to Karl Merck in 1932 amid ongoing economic pressures from the . E. Merck remained one of 's premier research-driven pharmaceutical firms through 1939, larger than its U.S. counterpart despite wartime losses.

Nazi Era Involvement and Post-War Rebuilding

During the Nazi era, Merck KGaA, headquartered in , was led by Karl Emanuel Merck, who joined the National Socialist German Workers' Party (NSDAP) on May 1, 1933, and served on its leadership's expert advisory board for public health from 1934 to 1942. Family members exhibited varying degrees of support for the regime following its rise to power in 1933. By 1941, nearly 1,000 Merck employees had been drafted into the , prompting increased employment of women in factories to address labor shortages. From 1942 onward, the Nazi administration assigned forced laborers to the company, including 257 Soviet citizens and 8 Poles—predominantly women—housed in barracks on the site; estimates indicate Merck employed between 570 and 695 foreign and forced workers by late 1942, drawn primarily from . Merck's operations contributed to the German war effort through chemical and pharmaceutical production, though specific outputs aligned with regime demands rather than unique ideological initiatives. The company's facilities endured severe Allied bombing: was largely destroyed in a raid on , 1944, followed by strikes on Merck's factory premises on , 1944, leaving the site in ruins by early 1945. Post-war, American military authorities assumed control of the devastated Darmstadt operations, prioritizing cleanup and salvage amid the Allied occupation of western . Merck underwent processes, enabling resumption of essential production including drugs, pesticides, and food preservatives under occupation permissions. By the early , the company rebuilt infrastructure, commissioning a photochlorination plant in Gernsheim in and reacquiring subsidiaries lost during the war. In 2000, Merck contributed 5.3 million Deutsche Marks to a German government-industry fund compensating former forced and slave laborers from the Nazi .

Post-War Growth and Internationalization (1950s–1990s)

Following , Merck KGaA in received authorization from Allied military authorities to resume production of pharmaceuticals, pesticides, and food preservatives, enabling initial recovery amid widespread infrastructure damage. Exports recommenced in 1947, marking an early step toward rebuilding networks disrupted by the conflict. By the early , the company launched key products such as Merck in 1949—a that became essential for treatment—and Pectamed, a , in 1953, supporting domestic revenue growth. In the , Merck prioritized as the foundation for expansion, focusing on corticosteroids and securing production licenses for and prednisolone to address inflammatory conditions. Infrastructure investments included commissioning a photochlorination plant in Gernsheim in 1953 and acquiring an additional factory in 1954, enhancing chemical manufacturing capacity. Internationalization accelerated through reacquisition of subsidiaries lost during the war, particularly in and , restoring pre-war footholds in those markets. Between 1959 and 1970, Merck secured 34 biotechnology-related patents in , laying groundwork for future innovations in biological processes. The 1960s and 1970s saw sustained emphasis on R&D-driven growth, with patenting contributing to diversification beyond traditional chemicals into emerging life sciences applications. By the , Merck established an research foundation, advancing targeted therapies amid rising global demand for specialized pharmaceuticals. International presence expanded via reestablished subsidiaries and growth, though specific metrics on numbers remain limited in available records. The marked a structural pivot for , culminating in the formation of Merck KGaA as a (KGaA), accompanied by a public offering valued at DM 2.4 billion—the largest in German corporate at the time. This restructuring provided capital for investments, including select acquisitions that bolstered life sciences and electronics sectors. Product milestones included the launch of Glucophage (metformin) for management, reinforcing Merck's position in chronic disease therapeutics. Overall, post-war strategies emphasizing R&D and selective reacquisitions propelled revenue growth, transitioning the firm from recovery to a multinational science and technology enterprise operating across multiple continents.

21st Century Transformations and Acquisitions

In the early , Merck KGaA underwent strategic refocusing by divesting non-core assets to prioritize innovative pharmaceuticals and specialty chemicals, including the sale of its generics division in 2007 for €4.9 billion. This move aimed to concentrate resources on high-growth areas amid competitive pressures in commoditized markets. Concurrently, the company bolstered its healthcare sector through the 2006 acquisition of , a Swiss firm, for €10.3 billion, which significantly expanded its capabilities, particularly in treatments, , and . These steps marked a pivot toward research-intensive operations, aligning with a broader transformation into a diversified science and technology entity. The saw aggressive expansion in life sciences and via landmark deals that repositioned Merck KGaA as a global leader in and materials. The 2010 purchase of Millipore Corporation for approximately €5.1 billion integrated advanced and bioprocessing technologies, enhancing offerings. This was followed by the 2015 acquisition of for €13.1 billion, creating one of the world's largest providers of and , with combined annual sales exceeding €6 billion in the sector. In , the 2014 acquisition of AZ Electronic Materials for €1.9 billion strengthened deposition and materials for chip manufacturing, while the 2019 purchase of for €5.8 billion further advanced precursors and delivery systems. These transactions, financed partly through and operational efficiencies, drove diversification, with life sciences and comprising over 60% of group sales by the late . Into the 2020s, Merck KGaA streamlined its portfolio through targeted divestments and a renewed strategic ambition to pioneer 21st-century science and technology across its three core sectors—healthcare, life science, and electronics—emphasizing oncology, immunology, and digital-enabled solutions. Key exits included the 2017 biosimilars business and the 2018 consumer health unit sold to Procter & Gamble for €3.4 billion, allowing reallocation to innovative R&D. Recent acquisitions, such as Exelead in 2022 for $780 million to enhance bioprocess development and SpringWorks Therapeutics in 2025 for $3.4 billion to accelerate oncology pipelines, underscore ongoing integration of advanced therapies and tools. In 2024, the divestment of the Surface Solutions business for €665 million further sharpened focus on high-tech electronics. These evolutions have sustained profitable growth, with group sales reaching €22.6 billion in 2023, amid a commitment to sustainable innovation over short-term gains.

Business Sectors

Healthcare Division

The Healthcare business sector of Merck KGaA, Darmstadt, Germany, discovers, develops, manufactures, and markets prescription pharmaceuticals and biological therapies primarily targeting , and , , and , with additional focus on rare diseases and consumer products. This sector operates through subsidiaries like EMD Serono in and internationally, emphasizing biology-driven innovation to address unmet needs such as immuno-oncology combinations and personalized solutions. In 2024, Healthcare contributed €8.5 billion in net sales, accounting for approximately 40% of the group's total €21.2 billion revenue, driven by of 2% amid expirations and new launches. Key franchises include , featuring Bavencio (), an anti-PD-L1 co-developed with and approved for and urothelial carcinoma, generating significant sales through combination regimens; and Tepmetko (tepotinib), a MET inhibitor for non-small cell with MET 14 skipping alterations, launched in 2021. In and , Mavenclad (), an oral short-course therapy for relapsing , has been a major driver since its 2019 European approval, targeting lymphocyte depletion to reduce disease activity. The portfolio, where Merck holds a leading global position, centers on recombinant gonadotropins like Gonal-f (follitropin alfa) for controlled ovarian stimulation in assisted reproduction, alongside antagonists such as Cetrotide () and progesterone supplements like Crinone, supporting over 1 million annual IVF cycles worldwide. offerings include Kuvan (sapropterin dihydrochloride) for , a rare . The sector's research and development efforts prioritize targeted therapies and biomarkers, with investments exceeding €1.5 billion annually in recent years to advance a pipeline of over 20 candidates as of 2025. Notable late-stage assets include potential immuno-oncology combinations building on Bavencio, such as with for , and novel agents like M9140, a TYK2 inhibitor for systemic in phase II trials. Merck anticipates mid-single-digit organic sales growth through 2025, supported by regulatory submissions and geographic expansions, though challenges persist from competition and pricing pressures in mature markets like and the . Strategic partnerships, including with for and academic collaborations for precision medicine, underpin this outlook, with a focus on to demonstrate causal efficacy in clinical outcomes.

Life Science Division

The Life Science division of Merck KGaA, , , develops and supplies technologies, tools, and services for research, development, and manufacturing, serving customers in academia, , and the . Its offerings span the entire , from discovery tools like antibodies, cell lines, and reagents to bioprocessing equipment, consumables, and contract development and manufacturing organization (CDMO) services. The division operates through units such as Process Solutions, which provides , , and single-use systems for , and Life Science Services, focusing on integrated CDMO solutions for biologics and . In fiscal 2024, the division generated net sales of €8,916 million, a 3.9% decrease from €9,281 million in 2023, attributed to market challenges in bioprocessing and CDMO segments amid capacity expansions and softer demand. The CDMO business unit specifically reported sales of €722 million in 2024, down 9.4% organically from €792 million in 2023, as the company invested in new facilities to support future growth in high-value modalities like cell and therapies. Despite the transitional pressures, the division maintains a leading position, ranking among the top three global suppliers of life science tools following key acquisitions. The division's product portfolio exceeds 300,000 items, including lab systems, research-grade chemicals, immunoassays, and end-to-end platforms for drug production. In 2023, it introduced over 8,500 new products, encompassing , reference standards, and chemicals under its "faucet program" for rapid customization. Notable innovations include the BioContinuum platform, which enables continuous to reduce production times and costs, and proprietary templates for development and . Strategic acquisitions have been pivotal to the division's expansion. The 2010 purchase of Millipore Corporation strengthened capabilities in and laboratory equipment, while the 2015 acquisition of Sigma-Aldrich for $17 billion—the largest in Merck's history—integrated extensive chemical and biotech , consolidating Merck's U.S. presence and elevating its market share in research consumables. These moves transformed from a chemicals provider into a comprehensive life sciences solutions leader, with ongoing investments in practices such as green solvents and reduced-packaging products to address environmental impacts in lab operations.

Electronics Division

The Electronics business sector of Merck KGaA, , , develops and supplies essential for semiconductors, displays, integrated circuits, and other electronic components, enabling technologies for data storage, processing, access, and visualization in consumer and industrial devices. This sector positions Merck as a key enabler in digital infrastructure, with products integrated into nearly all modern electronic devices, from smartphones to data centers. Formerly known as Performance Materials, it was rebranded as to reflect its focus on high-tech solutions for advancing digital living. Merck's involvement in electronics traces back over a century, with pioneering work in liquid crystals beginning in 1904, leading to commercialization and a dominant market position exceeding 60% global share in liquid crystal mixtures for displays as of 2017. The sector expanded through acquisitions, including OLED and polymer electronics businesses integrated into its liquid crystals operations, and the 2019 purchase of U.S.-based Versum Materials for approximately €6 billion, which bolstered semiconductor deposition and delivery systems. These moves addressed growing demand in chip manufacturing amid global semiconductor investments. Core products encompass mixtures for LCD and advanced displays, processing materials such as precursors for , and surface modification solutions for enhanced performance in and adjacent fields like . Innovations include UB-FFS (ultra-brightness fringe field switching) technology for higher-efficiency displays and -based for applications like communications. The sector also produces switchable windows under the eyrise® , with production facilities established in Veldhoven, , by 2017 for solar-shading modules. In 2023, the sector generated net sales of €3,659 million, a decline of 8.8% from €4,013 million in , driven by cyclical downturns including reduced demand and pricing pressures in displays. Organic growth varied by subsegment: solutions fell 3.9%, display solutions dropped 9.2%, and surface solutions decreased 3.6%, amid higher raw material costs and foreign exchange headwinds. Operating result (EBIT) shrank to €248 million from €572 million, yielding a margin of 6.8% versus 14.3% prior year. Recovery signs emerged in , with net sales rising 3.4% to €3,785 million. emphasizes next-generation optical and materials to sustain amid market volatility. The unit operates under CEO Kai Beckmann, a member of Merck's Executive Board.

Research, Innovation, and Ventures

Key Technological Advancements

Merck KGaA has pioneered advancements in technologies within its division, establishing itself as a global leader supplying approximately 60% of the world's s for display applications. The company's Ultra Brightness Fringe Field Switching (UB-FFS) technology enhances performance by improving brightness, contrast, and energy efficiency, earning industry recognition for enabling higher-quality screens in . In 2017, Merck introduced self-aligned vertical alignment (SA-VA) mixtures, which streamline alignment processes to reduce manufacturing defects and support advanced display modes like vertical alignment for superior viewing angles and response times. Further innovations include polymer-stabilized vertical alignment (PS-VA) and investments in -based smart window technologies, such as those acquired through the 2012 purchase of a Dutch specialist, enabling switchable opacity for energy-efficient building applications. In , Merck secured foundational U.S. patents for CRISPR-Cas9 modifications, including a 2019 proxy-CRISPR method that enhances editing efficiency, flexibility, and specificity by using surrogate ribonucleoproteins to guide enzymes more precisely, reducing off-target effects in therapeutic applications. Additional patents issued in 2020 cover optimized variants for broader uses, supporting advancements in treating genetic disorders through precise DNA modifications. These developments stem from Merck's research in , integrating computational modeling with empirical validation to overcome limitations in original systems. The Life Science division has driven bioprocessing innovations, notably the BioContinuum™ platform launched in 2018, which facilitates continuous manufacturing of biologics by integrating single-use technologies for perfusion , , and viral inactivation, reducing production times from weeks to days while minimizing costs and risks. Complementing this, Merck invested over €300 million in 2024 for an Advanced Research Center in focused on upstream and downstream bioprocessing tools, including dry powder media and process liquids tailored for mRNA and production. In parallel, a €1 billion commitment since 2021 has expanded global mRNA capabilities, enabling scalable and manufacturing amid demands from pandemics. These technologies prioritize empirical scalability, with data from pilot-scale validations showing up to 50% higher yields compared to traditional batch methods. In the Healthcare sector, Merck advanced treatments with tepotinib (Tepmetko), approved by the FDA in 2021 as the first MET exon 14 skipping mutation-targeted therapy for non-small cell , based on phase II trial data demonstrating 43% objective response rates in pretreated patients. The company also contributed to flexible durability through new barrier materials introduced in the , extending device lifetimes by encapsulating organic layers against moisture and oxygen, critical for wearable and foldable electronics. These efforts reflect Merck's emphasis on causal mechanisms, such as molecular stability in displays and targeted protein inhibition in drugs, validated through rigorous clinical and materials testing.

Investment and Venture Arms

M Ventures serves as the primary strategic corporate venture capital arm of Merck KGaA, , , established to pursue both financial returns and synergies with the company's core sectors in healthcare, life sciences, and . Founded in 2009 and headquartered in , , the fund operates on an evergreen mandate, enabling long-term investments in early- to growth-stage startups developing innovative technologies and products aligned with Merck's business priorities. The fund targets four key areas: healthcare (focusing on biotechnology advancements like novel therapeutics and diagnostics), life sciences (emphasizing tools for research and bioprocessing), (such as for semiconductors and displays), and frontier technologies including solutions. In December 2021, Merck expanded M Ventures with a €600 million commitment, enhancing its capacity to support portfolio companies through equity investments, co-development partnerships, and access to Merck's global expertise. This bolstered its activity in high-potential ventures, with investments typically ranging from seed to Series B stages. Notable investments include Artios Pharma (€341 million raised, focusing on DNA damage response therapies), Plexium ($225 million, oncology drug discovery), and NRG Therapeutics (£93.1 million, neuromuscular disease treatments), demonstrating M Ventures' emphasis on transformative biotech platforms. In April 2024, it backed Nucleai to develop spatial AI biomarkers for clinical applications in and . Beyond direct funding, M Ventures engages in strategic collaborations, such as its May 2025 partnership with Peregrine Ventures' Incentive Incubator, providing early access to bioconvergence and pharma startups for co-investment and mentorship. Earlier initiatives, like a 2022 Asia-Pacific startup support scheme offering up to $100,000 in non-dilutive funding, underscore efforts to scout global innovation. These activities position M Ventures as a bridge between external and Merck's R&D , with over 50 portfolio companies as of recent reports, though outcomes vary by market conditions and technological validation.

Awards and Scientific Recognitions

Merck KGaA's Life Science division, operating as MilliporeSigma in , has received multiple R&D 100 Awards, recognizing innovative technologies in bioprocessing and analytical tools. These awards, presented annually by R&D World magazine, highlight significant advancements commercialized in the prior year. As of 2023, MilliporeSigma had earned 10 such honors, underscoring contributions to scalable and viral safety testing. In 2018, the division secured two R&D 100 Awards: one for the BioReliance® Viral and Portfolio, which streamlines viral clearance validation for gene therapies, and another for technologies enhancing accessibility of gene therapy production. Earlier, in , Merck received recognition for its Sanger Arrayed Lentiviral Libraries, advancing gene editing precision in research applications. In 2023, MilliporeSigma's JumboFlex® Plus Assembly, a single-use system designed for high-volume biopharma clarification, earned an R&D 100 Award for its efficiency in reducing process steps and contamination risks. These accolades reflect Merck's focus on practical innovations in and production technologies, though external validations remain concentrated in the Life Science sector compared to Healthcare or divisions, where recognitions often involve industry-specific partnerships rather than standalone scientific prizes. Merck maintains historical ties to Nobel-level science, with collaborations involving laureates such as (Nobel Prize in Chemistry, 1902), who co-developed barbiturates using Merck facilities, though the company itself has not directly received Nobel recognition. Instead, Merck's sponsorship of awards like the Emanuel Merck Lectureship has honored four eventual Nobel recipients, including K. Barry Sharpless (, 2001 and 2022), highlighting indirect contributions to foundational research.

Naming and Trademark Disputes

The Merck Group, formally Merck KGaA, traces its origins to the German pharmaceutical firm E. Merck founded in 1668 in Darmstadt, which established a U.S. subsidiary in 1891 that became independent as Merck & Co. following World War I asset seizures under the Trading with the Enemy Act of 1917. To resolve ongoing naming conflicts, the two entities entered a 1955 coexistence agreement—amended in 1970—granting Merck KGaA exclusive rights to the "Merck" name and trademark outside North America (except specific carve-outs), while Merck & Co. (known as MSD internationally) retained rights in the U.S. and Canada; accordingly, Merck KGaA operates as EMD Serono or EMD Millipore in North America to avoid confusion. Disputes intensified in the digital era due to the global accessibility of websites, with Merck KGaA alleging that MSD's use of "Merck" on platforms viewable outside violated the agreement and infringed trademarks in regions like the and . In 2013, Merck KGaA initiated proceedings in the against MSD affiliates, claiming and from MSD's standalone "Merck" websites and references in historical contexts. The ruled in 2016 that MSD breached the agreement and infringed Merck KGaA's trademarks, issuing injunctions prohibiting non-compliant "Merck" use; this was partially remitted on in 2017 for further assessment of global digital targeting. Subsequent rulings reinforced Merck KGaA's position: in May 2020, the declared MSD's website uses infringing and ordered compliance, leading to damages calculations; the Court of Appeal upheld findings of continued breach in March 2025, dismissing MSD's appeal on prohibited UK-targeted "Merck" references. In October 2025, the awarded damages on a fee basis, emphasizing economic benefits from unauthorized use while rejecting hypothetical royalty claims unsupported by evidence of negotiation willingness. These cases highlight challenges of enforcing territorial trademarks amid borderless online access, with Merck KGaA's site noting ongoing global proceedings related to "Merck" branding. No major resolutions have altered the core 1970 agreement, perpetuating operational distinctions like EMD branding in Merck & Co.'s home markets.

Historical and Ethical Criticisms

During the Nazi era, members of the Merck family actively supported and the National Socialist German Workers' Party (NSDAP) following the regime's rise to power in , with some exhibiting enthusiastic allegiance. Wilhelm Merck, a company director, joined the SS in and rose to the rank of while encouraging employees to place faith in Hitler and the German military's invincibility. Mathilde Merck, known as "Tante Tilla," was a fervent party supporter who corresponded admiringly with and backed SS initiatives in racial . Merck KGaA employed slave laborers in its Darmstadt facilities during World War II, a practice common among German industrial firms contributing to the . In , an Allied air raid on the Darmstadt plant resulted in the deaths of hundreds of these laborers, who had been deliberately denied access to bomb shelters. The company also repurposed production lines to manufacture for Nazi rocketry, torpedoes, and aircraft, alongside pharmaceuticals such as and Eukodal () distributed to troops to sustain combat performance. From 1943, Merck-supplied Eukodal was administered daily to Hitler by his physician , even after the assassination attempt, often in combination with treatments by Erwin Giesing. These actions have drawn ethical scrutiny for enabling the Nazi war machine and prolonging the regime's capacity for , with critics arguing that the provision of performance-enhancing drugs to leadership amplified Hitler's megalomania and contributed indirectly to and other atrocities through sustained decision-making under chemical influence. Historical analyses, drawing on archival records and family correspondence uncovered by researcher Alexander Wolff, portray the company's wartime profiteering as a moral abdication, prioritizing commercial survival over resistance to totalitarian demands despite awareness of the regime's criminality. , Merck KGaA faced no unique prosecutions but operated under Allied oversight, with the family regaining control by 1948 amid broader German industrial restitution efforts, including contributions to forced labor compensation funds established in 2000.

Regulatory and Business Practice Issues

In the pharmaceutical sector, Merck KGaA participated in pay-for-delay agreements with in 2002 to restrict generic competition for the antidepressant , prompting the to impose a €21.4 million fine on Merck in June 2013 as part of a €146 million penalty across involved firms. These arrangements involved providing financial incentives and supplies to generic producers, including Merck's former subsidiary Generics UK (now part of ), to delay market entry and limit parallel trade, thereby preserving Lundbeck's market position. The upheld the fine in September 2016, and the Court of Justice of the dismissed Merck's appeal in March 2021, confirming the anti-competitive nature of the deals despite Merck's arguments that they involved legitimate patent settlements. Related follow-on damages claims by British health authorities arose after Merck paid an associated €18 million competition fine, with litigation ongoing as of 2023. Merck KGaA has also encountered merger control scrutiny. In May 2021, the European Commission fined the company €7.9 million for submitting incorrect or misleading information during its 2015 acquisition review of Sigma-Aldrich, breaching procedural obligations under EU merger regulations and potentially hindering effective antitrust assessment. Historical competition violations include a $14 million U.S. penalty in May 2000 for price-fixing or anti-competitive practices, a $50 million fine in 2002 against predecessor entity E. Merck KG for similar conduct, and a $2.3 million penalty in 2009. Acquired subsidiary Serono contributed to healthcare-related offenses, with a $704 million settlement in 2005 for off-label promotion of the AIDS drug Serostim, and a $44.3 million False Claims Act resolution in 2011 tied to improper government reimbursements for unapproved uses. These incidents reflect broader exposure to antitrust and pharmaceutical regulatory risks, as noted in Merck's annual reports, including ongoing citalopram-related claims from its divested 2007 generics unit.

References

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