Merz GmbH & Co - Merz Pharma

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Dec 3, 2012 (4 years and 8 months ago)

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PRESS RELEASE


Page
1
/
4

Successful fiscal year for the Merz Pharma Grou
p


The core segment, Pharmaceuticals, growing vigorously and faster
than the market / Profits remain high despite rise in investments for
the future / Expansion of state
-
of
-
the
-
art production and research
facilities completed / Consumer business prevails i
n a difficult
market environment



Frankfurt am Main, November 18, 2009


The Merz Pharma Group,
Frankfurt am Main, has brought the first fiscal year of a new century in the
Company’s history to a successful conclusion.

The consolidated revenue
of the Merz

Group grew once again at a high single
-
digit rate in the
healthcare division in 2008/09 (ending on June 30), rising by 7.9 % to
EUR

589.8 million (prior year: EUR 546.5 million). Earnings before tax
were held at a more or less constant level of EUR

133.8
million (prior year:
EUR 136.3 million) in spite of massive forward
-
looking investment in the
field of research and development (up 52 %).


“Because we are a private company and intend to stay that way in the
long

t
erm, we have been able to survive an ec
onomic and financial
situation that was extraordinary, even on a global scale.
In future the Merz
Pharma Group will be able to pursue its promising corporate projects as
well as further internationalization efforts from a strong financial base
,


says

Dr. J
ochen Hückmann, chairman of the
shareholders’ council.



“We are delighted that Merz has this year once again out
-
performed the
field in its core segment of pharmaceuticals. This demonstrates yet again
that our products enjoy a high degree of favor among

physicians and
patients. The expansion of our portfolio, particularly in aesthetics, the
continued start
-
up and expansion of our national organizations and a
promising pipeline provide us with great potential to sustain this growth in
future,” states Dr.
Martin Zügel, chairman of the management board.


The Pharmaceuticals segment (Merz Pharmaceuticals / Merz Dental)
generated revenue growth 12.6 %, bringing the total to EUR 475.9 million
(prior year: EUR 422.8 million), approximately 80 % of the revenue o
f the
Merz Pharma Group
.

The Consumer Products segment (Merz Consumer
Care / Merz Hygiene) generated 20 % of group revenue or EUR 113.9
million (prior year: EUR

118.6 million). International business is becoming
increasingly significant and now accounts fo
r 68 % of the total revenue of
the Merz Pharma Group.




Merz GmbH & Co. KGaA

Jan Schumacher

Corporate Communications

Eckenheimer Landstrasse 100

D
-
60318 Frankfurt am Main

Phone + 49
-

69
-

15 03
-

411

Fax

+ 49
-

69
-

15 03
-

581

jan.schumacher
@merz.de


www.merz.de

PRESS RELEASE


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Core pharmaceuticals business growing faster than the market


Merz Pharmaceuticals

was once again the main driver of growth in the
fiscal year 2008/09. In addition to a rise in royalties, generate
d chiefly in
other countries, sales of products rose by 15 %. This growth is largely
attributable to internationally successful marketing and sales campaigns
and new product launches.

Merz’s German pharmaceuticals business also grew significantly faster
than the pharmaceuticals market as a whole, jumping 17 %. After
eliminating the effects of foreign exchange rate changes, revenue in the
USA grew by 11 % compared to 6 % in the rest of Europe.


High product acceptance


The main motor for revenue and gro
wth in the past year were the products
aimed at diseases of the central nervous system (CNS). The vigorous
growth of
memantine

shows no signs of flagging. On the global market for
dementia treatments, this medication was able to maintain its position as
th
e second
-
most prescribed drug. After passing the USD 1 billion mark in
revenue in recent years, we passed the EUR 1 billion mark for the first
time this year, reflecting the great esteem in which the product is held by
physicians, patients and their family

members. Royalties rose by 10 % on
the prior year.
On the German market for dementia treatments, sales
growth of memantine (Axura®) was particularly dynamic, increasing by
22%. In particular, the successful launch of Axura
®

20mg film
-
coated
tablets for a
once
-
a
-
day dosage and the new Axura
®
starter pack have
contributed to this trend since July 2008.


Merz has launched an innovative product under the name of
Xeomin
®

on
the fiercely competitive market for botulinum toxins in a number of
countries. This dru
g is now marketed in 1
9

countries for treating the
symptoms of apraxia such as wryneck (spasmodic torticollis) and eyelid
twitch (blepharospasm).
Given the critical shortage of treatments for
patients with relevant indications such as apraxia and spastic c
onditions,
the therapeutic use of botulinum toxins promises continued high growth
potential.
In Canada, Argentina and Mexico, Xeomin
®
has now been
approved for treating spasticity of the arms after a stroke.
Revenue growth
of
Xeomin
®
amounted to 43.5 % in
the fiscal year just completed.


In the field of
aesthetic medicine
, Merz has continued to build on its
position. The revenue growth of Belotero
®
, a hyaluronic acid filler licensed
in by Merz, is of particular note. The 29 % increase in revenue bears
witne
ss to the high acceptance of the product by physicians and users
alike.




PRESS RELEASE


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Significant investments in the future


Merz is exploiting the sustained healthy earnings situation to continue
making targeted investments in research and development. The 2008/09

reporting period once again saw a substantial increase in the Group’s
spending on research and development, which rose by 52 % to
EUR

132.0 million.

We have laid the groundwork to ensure future growth with the expansion
of the preclinical research facili
ties at the Frankfurt Innovation Center for
Biotechnology (FIZ), the upgrade of the Dessau plant with state
-
of
-
the
-
art
technology to safeguard the global supply of botulinum toxin and the
modernization of the Reinheim production facility.

Other investment
s include the continued expansion of our network of
international subsidiaries, with Merz Pharma Canada Ltd. being founded
in Canada.


Consumer Care prevails over the competition


In the Consumer Products segment, Merz generated revenue of
EUR

113.9 milli
on (prior year: EUR

118.6 million) and was able to
maintain its position in the top ten brands on the German market despite
the fierce competition and general deterioration of the mass market in
Germany. The tetesept
®

brand maintained its leading position
as the
second largest brand on the non
-
pharmacy OTC market. By contrast,
growth in the beauty care division did not continue as expected.


Senator feels the pinch in advertising


As a company specializing in writing instruments and promotional items,
S
enator was affected by the lower level of advertising spending in the
economy. Like the rest of the sector, Senator suffered from falling
revenue. An efficiency enhancement program consisting of extensive
targeted cost
-
saving measures to rationalize and i
mprove market
performance have set the course for positive business development in
future.

For the first time, and with regard to improving the presentation of the
respective core competencies, the figures of the Healthcare division (Merz
Pharma Group) and

Senator have been presented separately in the
financial reporting.


Growing workforce



The Merz Pharma Group employed a total of 1,745 employees in the
healthcare sector as of June 30, 2009. The headcount is therefore approx.
8 % higher than at the end
of the prior reporting period. In Germany alone,
50 new employees were recruited to the research and development arm of
Merz. Additional positions were created to cater to the continuing
PRESS RELEASE


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expansion of our international subsidiaries. The 537 employees workin
g
outside of Germany represent 30 % of the total workforce.


Outlook


Merz is aiming for significant growth again in the current fiscal year. In the
process, the Company is relying on the continued international success of
memantine and the global roll
-
out

of Xeomin
®

in the wake of the expected
national
approval
s

of the drug for treating spasticity of the arms after a
stroke. Moreover, the sustained expansion in the field of aesthetic
medicine is of major strategic importance. With the launch of Merz’s own

botulinum toxin for treating glabella (frown) lines (Bocouture
®
) and a new
innovative filler based on encrusting brown algae (Novabel
®
), Merz has
rounded out its competitive portfolio. Bocouture
®

and Novabel
®

will be
launched in a number of countries in t
he current year.

In the Consumer Products segment the objective of Merz Consumer Care
is to prevail over the market by means of innovative healthcare products
and to develop long
-
term profitability.


About the Merz Pharma Group

Merz’s focus is on drugs f
or treating neurological and psychiatric conditions and
holds a leading position in the field of Alzheimer’s research. With memantine,
Merz has developed the first active ingredient in the world for treating moderate to
acute cases of Alzheimer

s. Worldwid
e, memantine is the second best
-
selling
drug for treating Alzheimer’s. Another core competency of Merz lies in clinical and
aesthetic dermatology. In addition to pharmaceuticals, Merz also serves the non
-
pharmacy related healthcare sector. In the Consumer
Products segment, Merz
Consumer Care is the leading provider of OTC medication, dietary supplements
and skincare products in the German
-
speaking countries with its well
-
known
tetesept® and Merz Spezial® brands. The Merz Pharma Group employs 1,745
people wo
rldwide (prior year: 1,619). The Company generated revenue of
EUR

589.8

million in the fiscal year 2008/09 (prior year: EUR

546.5

million).


Your contact

Merz GmbH & Co.
KGaA

Jan Schumacher

Corporate Communications

Eckenheimer Landstrasse 100

60318 Frankf
urt

Phone

+ 49
-

69
-

15 03
-

411

Fax

+ 49
-

69
-

15 03
-
581

jan.schumacher@merz.de