MOSCOW (MRC) -- Germany's Merck KGaA said Thursday it is planning additional investments of around 250 million euros (USD273.4 million) to further develop its pharmaceutical pipeline--one of the company's priorities for 2016, said The Morningstar.
"Next year, our focus will mainly be on the integration of Sigma-Aldrich as well as the further development of the pharmaceutical pipeline," Chief Executive Officer Karl-Ludwig Kley said.
The company said it expects that its R&D investments in immuno-oncology will be EUR150 million to EUR200 million higher in 2016 than in 2015.
These investments will be allocated to high-profile future products, such as avelumab, which Merck is co-developing with Pfizer, as well as to projects in early stages of clinical development. The first potential market launch for immuno-oncological antibody avelumab is expected in 2017.
"The foundations for growth have been laid, now it's about delivering," said Stefan Oschmann, member of the Executive Board and CEO-elect of Merck.
The acquisition of Sigma-Aldrich, a supplier of laboratory testing materials, will have a positive impact on the operating result before exceptionals next year, Merck said. This includes expected cost synergies of EUR90 million.
In November, the company had forecast an earnings before interest, taxes, depreciation and amortization pre exceptionals of between EUR3.58 billion and EUR3.65 billion for 2015.
As MRC informed earlier, in November, Sigma-Aldrich Corporation announced it has secured final approval from the European Commission (EC) on the planned acquisition of Sigma-Aldrich by Merck KGaA.
On September 22, 2014, Merck and Sigma-Aldrich announced they had entered into a definitive agreement under which Merck will acquire Sigma-Aldrich for USD17 billion - USD140 cash per share - establishing one of the leading players in the USD130 billion global life science industry.
Merck KGaA is a German multinational chemical, pharmaceutical and life sciences company headquartered in Darmstadt, with around 40,000 employees in around 70 countries. Merck was founded in 1668 and is the world's oldest operating chemical and pharmaceutical company. Merck operates mainly in Europe, Africa, Asia, Oceania and Latin America. It has major research and development centres in Darmstadt, Boston, Tokyo and Beijing.
Merck is not associated with U.S.-based drug company Merck Co.
MRC