Merck confirms plan to close sites in US, Brazil and Japan

Merck trims network to realise Sigma-Aldrich production synergies

By Dan Stanton contact

- Last updated on GMT

Image: iStock/Olivier Le Moal
Image: iStock/Olivier Le Moal
Germany’s Merck has earmarked four facilities for closure and says it is evaluating others, following its acquisition last year of Sigma-Aldrich.

In March, Merck told stakeholders it expected to achieve cost synergies of around €90m ($100m) in 2016, following the completion of its $17bn acquisition of life science and biotechnology firm Sigma-Aldrich last November​.

Speaking on a call last week to discuss Q2 2016 results, Udit Batra, CEO of Merck Life Science said the “synergy execution is very much on track,” ​citing four planned site closures as evidence.

According to Merck spokeswoman Neetha Mahadevan, the sites earmarked for closure are: a manufacturing and distribution site in Rio de Janeiro, Brazil;  a custom peptide and DNA oligos manufacturing site in Ishikari, Japan; and two sites in the US – Haywood, California and St. Charles, Missouri.

St. Charles is legacy [EMD] Millipore, as well as Hayward. Rio de Janeiro and Ishikari are legacy Sigma-Aldrich sites,”​ she told Biopharma-Reporter.

“We are also transferring capabilities of some of these sites. For example, St. Charles is being transferred to St. Louis and production in Hayward, California is being transferred to Cork [Ireland] and Seattle [US].”

Site evaluations

During the conference call, Batra said the pace of the closures have been “a little bit ahead of plan,”​ but said the firm has been evaluating other sites and so far only around “50% of the headcount measures have already taken place” ​in realising the full synergies of the Sigma-Aldrich deal.

For the second quarter 2016, Merck KGaA reported revenues of €1.4bn ($1.6bn) across its life science division, which includes tools and products focused on serving the the biomanufacturing industry.

Sigma-Aldrich contributed nearly €600m in sales to the quarter, but organically the division grew 8% year-over-year, with Batra attributing continuing solid demand for cell culture media and single-use systems as the main drivers.

Related news

Show more

Related products

show more

dPCR Case Study

dPCR Case Study

CellCarta | 08-Aug-2022 | Case Study

Streamline your adoptive cell therapy program with digital PCR. Our team has a unique expertise in digital and quantitative PCR to support you in ensuring...

The Reagents Behind Much of Molecular Biology

The Reagents Behind Much of Molecular Biology

Thermo Fisher Scientific | 25-Jul-2022 | Case Study

The ability to amplify, modify and fabricate DNA is fundamental to modern molecular biology. Why do so many researchers take their constituent parts for...

Microsampling in Early Phase Drug Development

Microsampling in Early Phase Drug Development

Altasciences | 10-May-2022 | Technical / White Paper

Microsampling significantly lessens the volume of blood and plasma/serum that is collected and analyzed to determine circulating concentrations of therapeutic...

Seasonal Vaccine Manufacturing

Seasonal Vaccine Manufacturing

Baxter BioPharma Solutions | 16-Feb-2022 | Technical / White Paper

The production of seasonal vaccines, such as those for influenza, presents unique challenges to manufacturers due to the necessary time constraints resulting...

Related suppliers

Follow us

Products

View more

Webinars