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Merck 2005 at a glance
Merck Group
The Merck Group is a global pharmaceutical and chemical company.
In 2005, Merck Group sales totaled € 5,870 million. Adjusted for the
disposal of VWR in the second quarter of 2004, this represents an increase
of 9.9% over 2004. We increased our research and development spending,
which has already been substantial for a number of years, by 19% to €
713 million. The operating result rose by a favorable 14% to € 883
million; return on sales (ROS) was 15.0% and return on capital employed (ROCE)
reached a notable 20.5%.
Pharmaceuticals
Our Pharmaceuticals business sector comprises not only patented
drugs, but also generics and consumer health care products. Sales
increased by 13% to € 3,894 million and the operating result rose 16% to
€ 454 million. Research and development spending grew 18% to € 579
million. In the Ethicals division, we invested € 442 million or 26% of
the division’s sales in R&D, focusing on our development compounds
for oncology.
Chemicals
The Chemicals business sector comprises three divisions offering
chemicals for high-tech applications: liquid crystals for displays; effect
pigments for industry and cosmetics; analytical reagents and test kits, as
well as products and services along the entire process chain of the
pharmaceutical and biotech industry. Sales increased by 13% to € 1,900
million and the operating result improved in comparison with the previous
year by 17%. Merck divested its Electronic Chemicals business for chip
manufacture in the second quarter of 2005.

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