Merck Millipore Sees China As Strongest Growth Market
Merck KGaA said its laboratory specialists unit Millipore sees China as one of the strongest growth markets and expects to expand its drug-development technology and services business in the region.
Merck KGaA bought Massachusetts-based life science company for an aggregate purchase price including debt and cash of about $7 billion in July last year. Merck Millipore has experienced a slowdown in sales of its lab equipment in the U.S. due to the economic downturn.
Bernd Reck, head of the chemicals business in the Dax Group stated, "Asia and especially China will in the coming years, becoming one of the strongest growth markets for Merck Millipore." Merck Millipore opened an office in Shanghai in May this year.
The company said its focus in Asia will clearly be on China and expects a double-digit growth from Asia in the coming years.
In the first six months, Merck Millipore revenues are expected to increase to €1.2 billion. For the full year, Merck aims the division's revenue to double to around €2.4 billion. The company said it is progressing well with the integration and continues to expect synergies of €75 million from the acquisition.
In July end, Merck reported a loss for the second quarter, compared to a profit last year, reflecting one-time charges. Meanwhile revenues increased 16 percent, boosted by the acquisition of the Millipore. The company also cut its full-year operating result forecast, citing one-time adjustments.
