Industry Trend Analysis - Opportunities For Expansion In Key Emerging Markets - OCT 2017

BMI View : Merck KGaA ' s emerging market growth strategies will continue to expand and diversify the company ' s commercial operations. While the developed markets will maintain a dominant share of the company ' s business operations, Merck KGaA continues to roll out a host of healthcare projects in key emerging markets. The multinational drugmaker ' s product portfolio is well suited to benefit from the growing demand for diabetes, cardiovascular and oncology products, with further support provided by efforts to boost disease awareness and education among healthcare professionals.

Merck KGaA will maintain its commitment towards healthcare initiatives in emerging markets, underpinning its long-term growth strategy. While Merck KGaA's traditional emerging market focus has centred on the Asia-Pacific (APAC) region, primarily China, the firm is moving forward with several investment projects in the Middle East and Africa (MEA) and Latin America regions.

Merck KGaA's group revenue is dominated by developed markets in Europe and North America, representing 31% (EUR4.74bn/USD5.56bn) and 26% (EUR3.86bn/USD4.53bn) respectively of net sales in FY16. While we expect these regions to remain the core contributors to Merck KGaA's revenue stream, as further advances are pursued in key markets the emphasis on emerging markets will certainly increase.

Clear Opportunities For Expansion In MEA And LatAm
Merck KGaA FY16 Total Revenue (EURbn) & Regional Contribution (%)
Source: Merck KGaA, BMI

This article is part of our Middle East & Africa coverage. To access this article subscribe now or sign up for free trial