Merck & Co


SWOT Analysis

Strengths

  • Merck is one of the top 10 players in the Swiss market.

  • Merck markets over 30 products in the country.

Weaknesses

  • Merck's innovative portfolio is vulnerable to parallel trade.

  • Generics products already eroding shares of patented drugs.

Opportunities

  • With a relatively limited product portfolio in Switzerland, new launches are the most likely source of growth.

  • High per capita and government spending will continue to promote overall market growth over the forecast period.

Threats

  • Parallel trade remains a threat due to high prices of Swiss drugs.

  • Merger of Merck and Schering-Plough may provide integration headache and short-term restructuring costs.

  • Continued focus on cost-containment by the public healthcare sector.

Company Overview

Merck is one of Switzerland's leading 10 pharmaceutical companies, with annual turnover of CHF250-300mn (some US$200mn). The company's worldwide presence includes regions such as the US, Japan, Europe, Middle East and Africa. In 2009, Merck merged with compatriot Schering-Plough to create the world's second largest pharmaceutical company by market share.

Strategy

The company markets more than 30 drugs in the country, specialising in heart and respirator health, infectious diseases, sun care and women's health. Merck sells its products primarily to drug wholesalers and retailers, hospitals, clinics, government agencies and managed healthcare providers, such as health maintenance organisations and other institutions. In December 2009, Swiss biotech company Addex Pharmaceuticals renewed its research partnership agreement with Merck & Co. The companies extended the agreement by a year with the aim of developing a treatment for Parkinson's disease. Merck will provide an additional US$1.8mn in the extended period.

Financial Data

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Operational Data

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Company Details

  • MSD

  • Schaffhauserstrasse 136

    Glattbrug

    8152

    Switzerland

    +41 44 828 7111

This article is tagged to:
Sector: Pharmaceuticals & Healthcare
Geography: Switzerland, Switzerland, Switzerland, Switzerland