Merck Confirms New German Research Plant

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--German biotech major Merck KGaA (Darmstadt, Germany) has confirmed plans to spend 300 million euro (US$323 million) to construct a new advanced research center at its headquarters in Darmstadt, Germany.

The spending forms part of a larger Darmstadt expansion program, which is expected to reach 1.5 billion euro ($1.6 billion) by 2025. The 18,000-square-meter Advanced Research Center will investigate solutions for manufacturing antibodies, mRNA applications and additional products required for biotechnological production. Due for commissioning in early 2027, it will employ about 550 workers. Described by Merck as an "almost carbon-neutral research operation," the new facility will be powered by a mix of photovoltaics, geothermal energy and air-source heat pumps. The specially designed facades and the green roofs will be designed to save energy and improve the microclimate. Merck said that it will be aiming for gold certification from the German Sustainable Building Council.

The ceremonial laying of the foundation stone was attended by Germany's Federal Chancellor Olaf Scholz, who said: "Investments such as those made by Merck KGaA, Darmstadt, Germany, here at its headquarters in Darmstadt make tremendous economic, medical and scientific sense. They are a tribute to Germany as a leading pharmaceutical, industrial and research location and reflect the strength of the life sciences. All of this proves that we are on the right track with the changes that we have made with a view to offering the pharmaceutical and biotech industry better conditions. The German Government will continue to tread this path with all due resolve."

Belén Garijo, chief executive officer of Merck KGaA, added: "With this strategic investment, we are strengthening our company's leading position in key technologies for the development and manufacture of novel medicines. As a leading provider of life science technologies, we continue to invest in research and development 'Made in Germany'. In doing so, we are enabling scientific progress for the benefit of millions of patients and customers around the world."

The Advanced Research Center will bring together a variety of research disciplines and technologies of the company's Life Science business sector. They include raw materials and processes for researching and manufacturing antibodies, recombinant proteins and viral vectors. It will also see research into cell culture media and pharmaceutical formulation and purification aids as well as digital reference materials. Antibodies and recombinant proteins are used to treat cancer, autoimmune diseases and infectious diseases, among other things. Viral vectors are predominantly used in gene therapies and vaccines while mRNA is currently being researched mainly for vaccines and cancer treatments. Merck said scientists will continue developing analytical chromatography--a method for separating, identifying and quantifying chemical substances in a sample. Research along the mRNA value chain will also be based in the new center.

The investment is a positive step for Merck, which recently posted its first dip in revenues in six years for its 2023 year-end financials. Despite an uptick in pharma sales, the company reported a 6% drop in global sales to 21 billion euro (US$22.6 billion). Merck's largest business sector, Life Science, recorded the largest loss of 11%, and the company blamed the weaker financials on a drop in demand for COVID-related products, with sales in 2023 of 250 million euros (US$269 million), compared to 800 million euro (US$862 million) in 2022.

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