Revenue distribution by industry:

• Healthcare: 45%
• Life Science: 40%
• Electronics: 15%

TOP 3 Markets:

• USA: 30%
• Germany: 20%
• China: 15%

Merck KGaA generates the majority of its revenue from the healthcare and life science sectors. These two areas together account for 85% of total revenue, with healthcare slightly dominating. The electronics sector contributes 15% to the revenue, making it the smallest of the three main areas.

Geographically, the U.S. market is the most important for Merck KGaA, followed by Germany and China. These three markets together account for 65% of total revenue, highlighting the importance of these regions for the company. The strong presence in the U.S. is particularly due to the high demand for life science products.

Production sites of Merck KGaA:

1. Darmstadt, Germany: Headquarters and largest production site.
2. Gernsheim, Germany: Production of liquid crystals and pigments.
3. Aubonne and Corsier-sur-Vevey, Switzerland: Biotechnological production.
4. St. Louis, USA: Production of specialty chemicals.
5. Shanghai, China: Production of Performance Materials.

Merck KGaA operates numerous production facilities worldwide, specializing in various business areas such as Healthcare, Life Science, and Electronics. The headquarters in Darmstadt is the central production and research site. In Switzerland, the company focuses on biotechnological production, while in the USA and China, specialty chemicals and Performance Materials are primarily manufactured. This global presence enables Merck to flexibly respond to market demands and offer a wide range of products.

Focus on Research and Development: 10% of revenue (2025, estimated)

Investments in Biotechnology: 2 billion euros (2025, estimated)

Digitalization and Automation: 1.5 billion euros (2025, estimated)

Merck KGaA pursues a growth strategy that is strongly focused on research and development (R&D). The company invests approximately 10% of its revenue in R&D to strengthen its position in the pharmaceutical and biotechnology industry. These investments aim to develop innovative drugs and therapies, especially in the fields of oncology and immunology.

Another focus is on expanding in biotechnology. Merck plans to invest around 2 billion euros in this area by 2025 to expand its production capacities and integrate new technologies. These investments are intended to support growth in the life science sector and secure market leadership.

Additionally, Merck is leveraging digitalization and automation to achieve efficiency gains. With planned investments of 1.5 billion euros in digital transformations and automation technologies, the company aims to optimize its production processes and improve supply chains.

These strategic initiatives are intended to help Merck KGaA solidify its market position and ensure sustainable growth in the years to come.

Important raw materials: Chemicals, pharmaceutical ingredients, special materials

Main importing countries: USA, China, India, Japan

Merck KGaA is a leading science and technology company operating in the fields of healthcare, life science, and performance materials. The company imports a variety of raw materials and materials necessary for the production of its products. These include in particular chemical raw materials and pharmaceutical ingredients.

The USA and China are significant trading partners for Merck, as they represent large markets for chemical and pharmaceutical products. India is also an important partner, especially for pharmaceutical ingredients, due to its strong position in generic production. Japan supplies specialized materials and technologies used in Merck's high-tech industry.

These global supply chains are crucial for Merck KGaA's innovation and competitiveness in the international market.

Market share in the field of Life Science: 22% (2024) R&D expenses: 2.5 billion euros (2024) EBITDA margin: 30% (2024)

Merck KGaA has a significant competitive advantage, which is evident through its strong market position in the field of Life Science, where the company holds a market share of 22%. This position is supported by continuous investments in research and development, which amounted to 2.5 billion euros in 2024.

The high EBITDA margin of 30% underscores the efficiency and profitability of the company. Merck KGaA also benefits from a diversified business model, encompassing the areas of Healthcare, Life Science, and Performance Materials, which diversifies risk and provides stability.

Furthermore, the innovative strength, especially in the field of biotechnology and digital health solutions, enhances the competitiveness of Merck KGaA. The strategic focus on high-growth markets and the continuous optimization of production processes also contribute to maintaining and expanding the competitive advantage.

Institutional investor share: approx. 70% (estimated for 2025)

Insider purchases/sales: No significant transactions known (2025)

The institutional investor share at Merck KGaA is traditionally high, as the company is considered a stable and attractive component of many portfolios. This estimate is based on historical data and the typical structure of DAX companies.

Regarding insider transactions, no significant purchases or sales are known for the year 2025. This could indicate that the management has confidence in the current corporate strategy and does not expect drastic changes in stock prices.

Market share of Merck KGaA: 8% (estimated, 2025)

Major competitors and their market shares:

1. Roche Holding AG: 12%
2. Novartis AG: 11%
3. Pfizer Inc.: 10%
4. Johnson & Johnson: 9%
5. Merck KGaA: 8%
6. Sanofi: 7%
7. Bayer AG: 6%
8. GlaxoSmithKline plc (GSK): 5%
9. AbbVie Inc.: 4%
10. AstraZeneca plc: 4%

Merck KGaA has a significant moat, demonstrated by its strong positions in Life Science, Healthcare, and Performance Materials. The company benefits from a broad product portfolio, a robust research and development department, and a global presence.

Compared to its competitors, Merck KGaA has an advantage in diversifying its business segments, making it more resilient to market fluctuations. However, Roche and Novartis also have strong moats, particularly due to their leading positions in the pharmaceutical industry and extensive pipelines of new drugs.

While Merck KGaA has a competitive edge in some areas, the moat of companies like Roche and Novartis in the pharmaceutical industry may be more pronounced due to their specialized products and market leadership in specific therapy areas.

Revenue growth: 8.2% (2024)
Research and development ratio: 13.5% of revenue (2024)
Debt ratio: 45% (2024)

Merck KGaA recorded a revenue growth of 8.2% in 2024, attributed to strong performance in the Life Science and Healthcare sectors. The company continues to heavily invest in research and development, with a ratio of 13.5% of revenue, indicating a strategic focus on innovation and future growth.

The debt ratio of 45% shows a moderate level of indebtedness, which can be considered healthy compared to industry standards. This provides Merck KGaA with the financial flexibility to invest in new projects and technologies without taking on excessive financial risks.

Overall, the strong emphasis on research and development, as well as solid revenue growth, suggests that Merck KGaA is well positioned to capitalize on future market opportunities. This could make the stock an attractive investment, especially for investors interested in long-term growth.

Dividend yield: 1.5% (estimated for 2025)
Dividend history: Continuous payout over the last 10 years

Merck KGaA has pursued a consistent dividend policy in recent years and regularly distributed dividends to its shareholders. The dividend yield for 2025 is estimated to be around 1.5%, based on trends from previous years and current market developments.

The company is known for its financial stability and its ability to pay dividends even in economically challenging times. This suggests that the payout can be considered reliable. The continuous distribution over the past ten years underscores Merck KGaA's commitment to providing its shareholders with a regular return.