MERCK IN ISRAEL
Growing our presence
Karl-Ludwig Kley | Press conference, Tel Aviv, June 29, 2015
WE ARE MERCK
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Healthcare, Life Science &
Performance Materials
founded in 1668
66 countries
39,000 employees
€1.7 billion invested in R&D in 2014
€11.3 billion sales in 2014
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What we do
Healthcare
Merck Serono
Allergopharma
Consumer Health
Biosimilars
Prescription medicines to treat, for
example, cancer, multiple sclerosis
and infertility, over-the-counter
pharmaceuticals for everyday
health protection or to provide fast
relief of colds and pain, as well as
innovations in the areas of allergies
and biosimilars.
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Life Science
Performance Materials
Merck Millipore
Performance Materials
Innovative tools and laboratory
supplies for the life science industry
that make research and biotech
production easier, faster and more
successful.
A wide range of specialty chemicals,
such as liquid crystals for displays,
effect pigments for coatings and
cosmetics, or high-tech materials
for the electronics industry.
Merck – A success story
in € billion
2013
Total revenues
11.1
2014
Sales in € billion
11.5
11.3
Sales
10.7
11.3
EBITDA pre one-time items
3.3
3.4
Margin (in % of sales)
30.4
30.0
Research and development
1.5
1.7
Business free cash flow
3.0
2.6
Earnings per share (in €)
2.77
2.66
Market capitalization* (at year-end)
28.3
34.1
Dividend per share (in €)
0.95
1.00
10.7
10.7
2012
2013
9.9
8.9
2010
* Based on the theoretical number of shares (434.8 million)
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2011
2014
EBITDA pre one-time items in € billion
3.4
3.0
3.3
2.7
2.5
2010
2011
2012
2013
2014
Our business sectors in numbers 2014
Sales
in € million
18% Performance
Materials 2,060
EBITDA pre onetime items*
Research and
development*
in € million
in € million
25% Performance
Materials 895
24% Life
Science 2,682
58% Healthcare
6,549
19% Life
Science 659
10% Life
Science 163
56% Healthcare
2,000
*Excluding Corporate and Other
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10% Performance
Materials 171
80% Healthcare
1,366
Key developments in 2014/15
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Acquisition of AZ
Electronic Materials
Entry into ImmunoOncology with Avelumab
Acquisition of SigmaAldrich
• Hightech materials for the
electronics industry, i.e. for
the production of integrated
circuits in tablet PCs and
smartphones
• Avelumab: Asset from the
Merck pipeline
• Largest acquisition in the
history of Merck - $17 billion
• Alliance with Pfizer to
develop and commercialize
• Complements our display
expertise and allows us to
provide even better portfolio
options to our customers
• Up to 20 clinical dev.
programs (with up to 6
pivotal studies): ovarian,
bladder, lung, gastric,
renal, etc.
• Announced in September
2015, but are still awaiting
some regulatory approvals
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• Boosts our portfolio for the
life science industry from
60,000 to 300,000 products
We are Merck – the original
Merck was founded in 1668 and is the oldest chemical and pharmaceutical company in the world. In
1887, Merck opened its own office in New York, which gave rise to the subsidiary Merck & Co. As a
result of World War I, this subsidiary was expropriated in 1917 and has been an independent company
ever since 1917. Merck – the original – holds the global rights to the Merck name and brand.
Exceptions are Canada and the United States, where we do business as EMD Serono, EMD
Millipore and EMD Performance Materials.
MERCK IN ISRAEL
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Our presence in Israel
Hertzelia
Rosh Haain
Sigma-Aldrich
Rehovot
Sigma-Aldrich
Jerusalem
Yavne
Jerusalem
(Qlight Nanotech)
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Our academic partnerships
Tel Aviv University
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Partnership with the Ministry of Economy
• Merck has been a proud member of
the Global Enterprise Partnership
Framework Program of the Ministry
of Economy since 2007.
• Merck was the first German-based
company accepted in this program
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QLIGHT
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Merck – past, present & future of displays
We are the global market and technology leader in liquid crystals and can
draw on over a century of experience with liquid crystal materials to provide
optimal solutions for our customers.
We make the future visible
From touch screens to 3D televisions: We have played a part in all key display
innovations. And we are continuing our research. For example, we are developing
flexible screens, holographic displays and 3D viewing experiences without the need
for special glasses.
Organic
high-tech
We are researching the
next generation of
materials for lighting and
displays – organic lightemitting diodes
(OLEDs). Not only are
they extremely energyefficient, they also
provide brilliant colors
and sharp images from
every viewing angle –
which makes them ideal
for the flexible and
curved displays of the
future.
Qlight Nanotech – Rod shaped quantum dots
for display and lighting
 Founded as a spinoff from Hebrew
University Jerusalem in 2009
 Focus on development of quantum dots:
rod-shaped nanoparticles with tunable and
high efficient light emission
 Controlling the shape and the structure of
these semiconductor nanoparticles will allow
new applications for display and lighting
 Qlight Nanotech was awarded as “Company
of the Year” by the Israeli Chief Scientist at
the NanoIsrael Conference in March 2014
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The Israeli Chief Scientist hands over the
“Company of the year” award
Qlight Nanotech & Merck: Our partnership
Joint invention of the
nanorod display principle
First financing round,
equity investment by Merck
Second equity
investment by Merck
Foundation of Qlight Nanotech
as spin-off of the HUJ
2008
2009
2010
2011
2012
2013
2014
Full acquisition
by Merck
2015
Israeli government funded cooperation
Qlight awarded “Company of
the Year” by Chief Scientist
Exclusive cooperation and license agreement with Merck
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Possible markets and applications
Displays: Novel flexible displays and
improved backlight units for LCD
Application:
 Novel full color emission displays
 Improved active backlight for liquid
crystal displays
Lighting: Converters for the full color
spectrum of light
Advantages:
Color converters for LED with warm white
color emission enabling the full color
spectrum of light
Example below: LED with quantum dot converter
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OUR FOCUS ON INNOVATION
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Universal megatrends: We provide answers
across disciplines
Technological
Megatrends
Social Megatrends
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Biotechnology
Electronics
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Health
Communication
Enabling cutting-edge
biopharmaceutical
research and production
Innovative medical
devices that verify
adherence, such as
RebiSmart for MS patients
New diagnostic
procedures, such as Eeva
From touchscreens to 3Ddisplays, we have been
involved in all significant
display breakthroughs
Digitalization: Innovations beyond displays
Intelligent light controls
Complete spatial
immersion
Simple and energysaving controls for
lighting
Transparency
Smart Window
Invisible when
turned off
Control of light
penetration with
mechanical elements
Robust
Light and indestructible
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Holographics
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Smart
Active antennas for fast
data transmission
Biotechnology: From R&D to Production
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Our Pharma development pipeline
Phase II
Phase I
 Tepotinib (MSC2156119J)
c-Met kinase inhibitor
Solid tumors
 Evofosfamide (TH-302)
Hypoxia-activated prodrug
Hematologic malignancies and solid
tumors
 MSC2363318A
p70S6K / Akt inhibitor
Solid tumors
 Beigene-283 - BRAF inhibitor
Solid tumors
 Beigene-290 - PARP inhibitor
Solid tumors
 MSC 2490484A – DNA-PK inhibitor
Solid tumors
 Avelumab
Anti-PD-L1 mAb
Solid tumors
 MSB 0010360N (NHS-IL12)1
Cancer immunotherapy
Solid tumors
 MSB 0012041 (ALX-0761)
Anti IL-17 nanobody
Psoriasis
 MSC 2364447 - BTK inhibitor
Healthy volunteers
c
Phase III
 ATX-MS-1467
Immune tolerizing agent
Multiple sclerosis
 Pimasertib - MEK inhibitor
Melanoma
 Evofosfamide (TH-302)
Hypoxia-activated prodrug
Melanoma
 Evofosfamide (TH-302)
Hypoxia-activated prodrug
Non-small cell lung cancer
 Avelumab
Anti-PD-L1 mAb
Merkel cell skin carcinoma
 Sprifermin
Fibroblast growth factor 18
Osteoarthritis
 Atacicept
Anti-Blys/anti-APRIL fusion protein
Systemic lupus erythematosus
 Evofosfamide (TH-302)
Hypoxia-activated prodrug
Soft tissue sarcoma
 Evofosfamide (TH-302)
Hypoxia-activated prodrug
Pancreatic cancer
 Avelumab
Anti-PD-L1 mAb
Merkel cell skin carcinoma
 Pergoveris®
(follitropin alfa and lutropin alfa)
Assisted reproductive technology, poor
ovarian responders
In registration
 Kuvan®
(Sapropterin dihydrochloride)2
Phenylketonuria in children less than 4
years of age
Neurodegenerative Diseases
Oncology
Immuno-Oncology
Immunology
Endocrinology
Fertility
Status: February 28, 2015 1Sponsored by the National Cancer Institute (USA)
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2 Post-approval
request by the European Medicines Agency
Our Innovation environment
The universe of possibilities
Merck
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Gesellschafterversammlung | 20. Juni 2015
What else can we look forward to?
Biochips
Augmented Reality
Urban Farming
Widespread use
of big data
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Our Innovation Centre – giving ideas a home
 Anchor innovation within
the heart of Merck
 Enable new ways of
working and cooperating
– across businesses and
with external partners
 Open Merck towards
society to improve
acceptance
 Modular innovation center
is already finished and
open for business
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June 2005 | BBUG
Our Global R&D Footprint
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We are building a bright future
- In Israel and worldwide
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