GERMANY – German science and technology giant Merck KGaA is prioritizing its Life Science business as a key area for growth, with plans for more acquisitions following its recent US $600 million deal to acquire Mirus Bio.
CEO Belen Garijo emphasized that the company’s acquisition strategy remains guided by its core principle: “the right target, at the right time, for the right price.”
Merck KGaA has been aggressively investing in its biopharma and life science divisions as part of a broader goal to reach €25 billion (US $26.2 billion) in global revenue by 2025—a significant jump from €19.7 billion (US $20.7 billion) in 2021.
Starting this year, the company will actively pursue “larger-scale” mergers and acquisitions (M&A) to accelerate its expansion.
The company’s growth strategy centers on its “Big 3” businesses: process solutions and life science services, innovative healthcare products, and semiconductor materials. Together, these areas are expected to drive 80% of Merck’s growth moving forward.
Merck’s recent investments highlight its commitment to the Life Science sector.
Its life science arm, MilliporeSigma, has seen substantial support, including a €440 million (US $461.6 million) investment in Ireland and the opening of a US $65 million high-potency active pharmaceutical ingredient (HPAPI) site in Wisconsin.
Additionally, Merck launched a new facility in France as part of a five-year growth plan to strengthen its global manufacturing capabilities.
Ahead of its capital markets day, Merck forecasted 7% to 10% sales growth for its life science services division, even accounting for the “complete absence” of pandemic-related manufacturing demand.
The healthcare segment is also projected to achieve mid-single-digit percentage growth annually, driven by new drug launches such as evobrutinib for multiple sclerosis and xevinapant for head and neck cancer.
The company is also expanding its semiconductor materials division through acquisitions, including the purchase of Korean supplier Mecaro’s chemicals business.
This move reflects Merck’s broader strategy of bolstering high-growth segments across its portfolio.
Merck’s M&A ambitions come amid a competitive landscape in the life sciences and healthcare sectors.
Competitors like Pfizer have been pursuing acquisitions fueled by COVID-19 vaccine profits, while other pharmaceutical giants, such as Merck & Co., have similarly expressed interest in both small- and large-scale M&A opportunities.
In 2022, Merck launched a dedicated Life Science Services (LSS) division to consolidate its CDMO (contract development and manufacturing organization) and contract testing units, along with associated R&D, sales, and marketing operations.
The new division, which went live in April 2022, positions Merck as a comprehensive service provider in key areas such as monoclonal antibodies, mRNA, high-potency APIs, antibody-drug conjugates (ADCs), and viral and gene therapies.
The LSS division, headquartered in Burlington, Massachusetts—near Boston’s biotech hub—is led by Dirk Lange, former CEO of global CDMO KBI Biopharma.
The unified structure enhances Merck’s ability to support biopharma innovation and meet the growing demand for advanced manufacturing and testing services.
