THOUGHTS ON THE FUTURE SIMON CLARK Six young THOUGHTS ON THE FUTURE Six young researchers SIMON CLARK

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  • T H O U G H T S O N T H E F U T U R E Six young researchers

    S I M O N C L A R K is a PhD student in climate physics at the University of Exeter. His YouTube videos also mainly address topics in physics.

    “ Things only improve if there are people who have crazy ideas and try out something new.”

    Does Merck drive fresh ideas? Find the answer on page 10.

  • What does Merck think of this principle? Find the answer on page 11.

    S A M U E L C U N H A is a Brazilian parasitologist who shares his passion for biology with numerous followers on YouTube.

    “ To stay passionate, we always have to think of the future,of the poten- tial result of our work.”

  • E V A A M S E N is a biochemist, writer and science communicator based in London.

    “ For scientists it is important to exchange ideas not only with their colleagues, but also with people from totally different fields – for example, with artists.”

    Does Merck practice interdisciplinary exchange? Find the answer on page 13.

  • I N É S D A W S O N is a biologist, a PhD student at Oxford and a popular YouTube blogger.

    “ Research and creativity should go hand in hand, as not all problems have a clear solution.”

    Does Merck promote creativity? Find the answer on page 14.

  • J A K O B F U T O R J A N S K I is co-founder and CEO of NeuroNation, a Berlin-based start-up specialized in developing solutions for scientific mind mapping.

    “ Only if we know why we are doing something, can we master the great challenges of our time.”

    Does Jakob’s motto also apply at Merck? Find the answer on page 12.

  • S I M O N E S T R E Y is a graduate geographer and CEO of Peat, a start-up that is developing software solutions to make sustainable pest control in agriculture easier. The young company is working with the Merck Innovation Center in Darmstadt.

    “ Handling our natural resources responsibly is becoming increasingly important.”

    Does Merck act responsibly? Find the answer on page 15.

  • January 11 Merck builds portfolio in DNA damage

    response (DDR) We enter into a licensing agreement with

    Vertex Pharmaceuticals for four promising R&D DDR programs. The addition of the DDR port­

    folio in­licensed from Vertex to our own in­house DDR platform has positioned us as one of the

    key players in the DDR field.

    May 9

    Bavencio® receives accelerated approval in the United States for

    bladder cancer Less than two months later, the FDA

    grants the next approval for Bavencio® – for the treatment of patients with

    advanced or metastatic urothelial cancer.

    January 12

    Big Data partnership with Palantir We want to use the advanced data analytics

    capabilities of the U.S. company Palantir to more rapidly develop and deliver medicines

    and commercialize new products. This could also play a part in the development of en­

    tirely new therapeutic options for patients in the future. Initially, we will use Palantir’s

    technology in cancer treatment and patient services. Later on it can be used in other

    areas of the company.

    March 23

    FDA grants accelerated approval of Bavencio® in rare and aggressive

    form of skin cancer The U.S. Food and Drug Administration

    (FDA) grants the first approval of an oncology treatment for metastatic Merkel

    cell carcinoma.

    Highlights of 2017

  • September 1 Merck divests Biosimilars business

    The closing of the Biosimilars sale to Fresenius announced on September 1 is in line with our

    strategy to focus the Healthcare business sector on the pipeline of innovative medicines in oncology,

    immuno­ oncology and immunology. Merck receives an upfront payment of € 156 million and is entitled

    to milestone payments of up to € 500 million, plus royalties on future product sales.

    August 31 We light up Seoul

    At the first Seoul Biennale of Architecture and Urbanism, together with our collaboration partners

    OLEDWorks, OPVIUS and Kolon, we present a new textile façade concept combining OPV (organic

    photovoltaics) and OLED (organic light­emitting diode) technologies.

    August 25 European Commission gives the green light

    for Mavenclad®

    Mavenclad® (cladribine tablets) is approved for MS patients in the EU, and is the first oral short­course

    treatment for highly active relapsing multiple sclerosis.

    August 3 Patent for CRISPR technology

    The European Patent Office grants Merck the patent for its CRISPR technology used in a genomic inte­

    gration method for eukaryotic cells. Merck was awarded similar patents by the Australian, Canadian and

    Singapore patent offices over the course of 2017.

    July 21 New Performance Materials

    application laboratory in Shanghai We open an applications laboratory in China through

    which we provide comprehensive, customized services for our quality products. This also effectively

    allows us to seek and foster creative collaboration with customers for new applications and

    formulations.

    Highlights of 2017

  • September 12 Debut at the International Motor

    Show (IAA) in Frankfurt We exhibit at Europe’s most important motor show with our own stand for the first time.

    Our presentation centers on high­tech materials for lighting, antennas, displays and surfaces.

    September 21 EU approval of Bavencio® in Merkel cell

    carcinoma The European Commission approves our oncology

    medicine Bavencio® in this rare and aggressive form of skin cancer.

    September 5

    Merck examines strategic options for Consumer Health

    We are preparing strategic options for Consumer Health. These include both a full or

    partial sale of the business as well as strategic partnerships. We are thus focusing on our

    innovation­ driven Biopharma pipeline and are initiating the next stage of the successful further

    development of the Consumer Health business.

    October 23 New Life Science Center in Burlington,

    Massachusetts We open a new Life Science Center in Burlington,

    north of Boston, to strengthen our presence in this key global science region. The new facility serves as a regional hub for scientific advances and customer collaboration. The Greater Boston

    area is a hotbed of life science innovation.

    November 30 Liquid crystal window modules facility

    in the Netherlands We open our new production facility for liquid

    crystal window modules in Veldhoven, a town near Eindhoven. With an investment of around

    € 15 million, we are continuing to build on our expertise as the market and technology

    leader in liquid crystals for displays by moving into other applications beyond televisions,

    laptops, smartphones, and tablet PCs.

  • MERCK GROUP Key figures

    Change

    € million 2017 2016 € million in %

    Net sales 15,327 15,024 303 2.0%

    Operating result (EBIT)1 2,525 2,481 44 1.8%

    Margin (% of net sales)1 16.5% 16.5%

    EBITDA1 4,282 4,415 – 133 – 3.0%

    Margin (% of net sales)1 27.9% 29.4%

    EBITDA pre1 4,414 4,490 – 76 – 1.7%

    Margin (% of net sales)1 28.8% 29.9%

    Profit after tax 2,610 1,633 977 59.9%

    Earnings per share (€) 5.98 3.75 2.23 59.5%

    Earnings per share pre (€)1 6.16 6.21 – 0.05 – 0.8%

    Business free cash flow1 3,318 3,318 – –

    MERCK GROUP

    Net sales € million

    MERCK GROUP

    EBITDA pre1 € million

    2017

    15,024

    12,845

    11,363

    10,735

    2016

    2015

    2014

    2013

    4,490

    3,630

    3,388

    3,253

    2017

    2016

    2015

    2014

    2013

    4,41415,327

    1 Not defined by International Financial Reporting Standards (IFRS).

    1 Not defined by International Financial Reporting Standards (IFRS).

    Key figures for 2017

  • Performance Materials

    Healthcare Life Science

    Business sectors

  • M AG A Z I N E

    Curious Minds 08 – 15

    Young people as the source of impetus and ideas: They are experts in their respective fields, international aspiring young scientists, founders, unconventional thinkers. They succinctly and self-confidently outline their expectations of a better future and the Executive Board explains what Merck is doing in this respect.

    An insatiable passion for research 16 – 27

    At Merck, patients are at the forefront. That’s why we invest substantial amounts in new therapies – for example to improve the treatment of cancer or multiple sclerosis (MS). At our research and development hubs in Darmstadt, Boston, Beijing, and Tokyo, around 3,000 employees work in global networks for the benefit of patients.

    New ways of identifying disease 28 – 33

    Working closely with the global scientific community, our Life Science business sector is developing numerous innovative products and solutions for biotech and pharmaceutical research. The new tools and processes that we offer are helping our customers to capture the potential of genome medicine.

    Welcome to space