Merck KGaA plans biopharma plant in Darmstadt

Merck KGaA, the German pharmaceutical and chemical company, has announced plans to build a biopharmaceutical production plant at its headquarters in Darmstadt, Germany.

The plant will be used to manufacture the latest generation of biological active ingredients for the treatment of cancer. At an estimated cost of approximately Euro 190 million, this would be the second-largest single investment ever made by the company. Approximately 190 new positions would be created. Production is expected to commence in 2010.

'We decided in favour of Darmstadt mainly for strategic reasons. This biopharmaceutical production plant represents a very important technology for Merck and will therefore be constructed at our headquarters,' said Dr Michael Roemer, chairman of the executive board.

Initially, the new plant would mainly produce the monoclonal antibody Erbitux (cetuximab) for the treatment of colorectal and head and neck cancer. Merck acquired the rights to develop and market Erbitux outside the United States and Canada from ImClone Systems. In Japan, Merck shares co-marketing rights with ImClone Systems.

Merck first launched Erbitux in 2003 and now markets it in 52 countries; it is currently manufactured for Merck by Boehringer Ingelheim and ImClone Systems. The oncology drug is Merck's single top-selling pharmaceutical product, generating a 56% year-on-year increase in sales to €81 million in the second quarter of 2006.

'Merck has made important contributions in the fight against cancer through our own research and successful alliances,' said Elmar Schnee, Merck KGaA executive board member responsible for the pharmaceuticals business sector.

'With Erbitux, we have taken a major step into this growth market. With our own production plant, we will be able to ensure a long-term, rapid, sufficient and high-quality supply of our cancer drugs,' Schnee added.