Merck Announces Organizational Transformation of Life Science Business Sector to Strengthen CDMO Offering and Accelerate Future Growth

Darmstadt Innovation Center

– New operating model to accelerate profitable growth strategy
– Newly formed Life Science Services business unit to offer fully integrated CDMO and Contract Testing Services
– Science and Lab Solutions business unit to combine Research Solutions and Applied Solutions
– Christos Ross, Head of Integrated Supply Chain Operations, to retire

In February 2022 Merck, a leading science and technology company, announced several organizational changes and a new operating model to support the long-term growth strategy of the Life Science business sector and to better serve the evolving needs of its global customers.

“Science and technology are advancing at an unprecedented speed, and with that are the needs and expectations of our customers worldwide. Having the right operating model in place will accelerate our ability to provide the best products and services to our customers and deliver on our high ambitions for long-term profitable growth,” said Matthias Heinzel, Member of the Executive Board of Merck and CEO Life Science. “Ultimately, our goal is to make a positive impact on patients by enabling the development of life-saving therapies and vaccines.”

New business units will complement the current Life Science structure as follows, effective April 1, 2022:

– Life Science Services (LSS). Existing Contract Development and Manufacturing Organization (CDMO) and Contract Testing services will be consolidated into one global fully integrated Life Science Services organization for traditional and novel modalities, along with the respective sales and marketing, research and development, manufacturing, and supply chain operations. The CDMO service business covers traditional modalities such as monoclonal antibodies (mAbs) and high-potency active pharmaceutical ingredients (HP-APIs), and novel modalities such as antibody drug conjugates (ADCs) and viral and gene therapies (VGTs). This also includes the company’s mRNA offering, which was strengthened through the acquisition of AmpTec last year and will be further complemented through the pending acquisition of Exelead, announced in January 2022. The new LSS business unit will be led by Dirk Lange, who will join the Life Science Executive Team effective February 15, 2022, based in Burlington, Massachusetts, USA.

– The Process Solutions (PS) business unit will continue to be led by Andrew Bulpin and focus on delivering the company’s leading product offering for pharmaceutical development and manufacturing, including filtration devices, chromatography resins, single-use assemblies and systems, processing chemicals and excipients. Leveraging close synergies between the strong offering of the Life Science Services organization and the best-in-class products from the Process Solutions business will enable Merck to provide a unique and differentiated proposition to customers globally.

– Science and Lab Solutions (SLS). Combining the Research Solutions and Applied Solutions business units into one organization will provide a more seamless experience to customers in the pharma and biotech, industrial and testing, academic and government, as well as diagnostics sectors. This shift will provide a more seamless experience for customers, as they continue to benefit from Merck’s scientific expertise and access to one of the broadest portfolios in the industry, including reagents, consumables, devices, instruments, software and services for scientific discovery, in addition to lab water instruments, consumables and services, microbiology and biomonitoring products, test assays, analytical reagents, and flow cytometry kits and instruments. The SLS business unit will be led by Jean-Charles Wirth, currently Head of Applied Solutions.

– Integrated Supply Chain and Operations (ISCO). Christos Ross, Head of ISCO, will retire, effective March 31, 2022. His successor will be Ivan Donzelot, who will join the Life Science Executive Team on March 23, 2022, based in Switzerland. He will lead the ISCO organization with the aim to offer best support to the growth of the business and further establish standardized and best-in-class processes within site operations and supply chain. With the creation of LSS, ISCO services related to the CDMO and Contract Testing businesses will move to that organization.

Transformation, Strategy & Business Development and Quality & Regulatory as well as other enabling functions will remain unchanged as part of the Life Science Executive Team, continuing to deliver value and expertise to the business.

“With Process Solutions and our two new business units, Life Science Services and Science and Lab Solutions, we have created a new, differentiated model for Merck and the industry. Our new operating model is another strong proof point of our evolved strategy in action and serves as a key milestone towards realizing our ambitious growth plans in the next decade,” said Heinzel. “I wish our new leaders great success in their roles, and on behalf of the entire Merck organization, I thank Chris Ross for his many years of service and for his tireless efforts in helping to bring life-saving products to patients around the world.”