The Merck Group: China & India, History & Innovation Part 1

The German multinational manufacturer Merck Group, known widely for their work in the global pharmaceutical sector, is expanding operations in China and India through its Life Science Business. 

The Life Science Business offers a diversity of products and end-to-end process solutions designed to support biopharma manufacturers from process development to scaling up.

Providing bioreactors, filters, resins, cell lines, chromatographic, excipients and pharmaceutical raw materials, the Life Science Business benefits patients and contributes to the advancement of global health.

The Merck Group has 60,000 employees, 250 companies and a presence in about 66 countries, specifically recognising the huge manufacturing power of India and China. 

Focusing on China, Belen Garijo, CEO of Merck Group says: 

"China continues to be a very strategic market for Merck

" It's our second most important market and one of the fastest growing, so we have a strong footprint in China that has developed very rapidly in recent years

"We have seven sites and almost 5,000 employees, and the contribution of China to our global operations is critical on several fronts. 

"One, our regionalised supply chain. Second, innovation, and in addition to that we continue to invest very heavily in China."

It’s no exaggeration to say that China over the past twenty years has become a manufacturing powerhouse, arguably the biggest in the world.

And India, as its manufacturing sector evolves and grows is quickly catching up.

This is particularly true when it comes to pharmaceutical production.

Cheap labour, economies of scale and laxer environmental regulations have been factors in India's and China's rise.

Europe now relies on China to produce key drugs such as antibiotics, penicillin, blood pressure medication, and painkiller drugs.

As Europe and the rest of the world grow increasingly reliant on India and China for pharmaceutical ingredients and precursor chemicals, Merck is helping to fuel manufacturing research, innovation and development in both nations, contributing to global pharmaceutical growth.

Here's part one of our two-part exploration of how The Merck Group is driving medical manufacturing innovation in China and India.

Merck & China: a history of innovation

“For my part, I firmly believe that China will become considerably more powerful than any other nation, should it wish to.” 

Who would you attribute the above quote to? You might be imagining a modern-day politician, as the discussion of China’s manufacturing and industrial dominance looms large.

But you would be wrong. 

This was in fact said by Willy Merck, a member of the eighth generation of the Merck family of entrepreneurs during a visit to China all the way back in 1888.

China has one of the world’s oldest medical systems, with acupuncture and herbal remedies that date back to at least 2,200 years.

The gold-standard drug for Malaria, artemisinin was in fact discovered in China, after its isolation from sweet wormwood.

The Merck Group has always recognised the global importance and innovation within China, investing in its pharmaceutical future from the start.

The oldest documentable business contact between Merck and the Chinese market dates back to 1897, with Merck appointing Voelkel & Schroeder Ltd, Shanghai, as its first representative for China in 1911.

In 1933 the first Merck subsidiary in China was established, E. Merck Chemical Co. Ltd., with the goal of selling industrial chemicals, laboratory chemicals, reagents and specialty pharmaceutical products.

After upheaval and liquidation during World War Two, Merck eventually re-opened its own offices in Beijing and Shanghai in 1995, founding E. Merck International Trading, Shanghai, in 1997. 

Today, Merck has an expansion operation in China, with innovation hubs spanning Guangzhou, Shanghai and notably Nantong.

Custom CCM at the Nantong Center

Merck recently announced the commercial production of the first GMP ( Good Manufacturing Practices) compliant manufacturing line for cell culture media in China.

Cell culture media supports the growth and maintenance of a variety of mammalian and other cell lines in vitro. It enables convenient, controlled, consistent and easily reproducible results, accelerating the safety and success of medical testing.

The Merck Group has invested US$7.26m at its Life Science Center in Nantong, a major industrial hub in China’s Yangtze River Delta region. 

This investment will help meet growing local demand for quality custom CCM, widely used in vaccines, novel therapeutics and biopharmaceuticals.

Chinese customers will be able to access Merck’s custom CCM products and services reliably and efficiently, enhancing the consistency and innovation of their manufacturing process. 

Overall this will speed up time to market, enhance scalability and improve consumer access to life-saving therapies.

“This investment further expands Merck's footprint and capabilities in China, showcasing our commitment to the development of the local biopharma industry,” said Roy Wu, Managing Director of the Life Science business sector, Merck China. 

“The new cell culture media manufacturing line is a positive proof of our commitment to improve patient care by leveraging our innovative spirit and global network of expertise.”

Applying media components from qualified sources only, the Nantong GMP facility allows for a smooth transition from pilot to commercial-scale cell culture production with comprehensive regulatory documentation.

Along with tailor-made dry powder CCM products, customised technical and operational assistance will also be provided to support local biopharma manufacturers’ processes and shorten time to market. Product lead time is expected to be reduced as a result of local manufacturing.

Stay tuned for part two, where we explore The Merck Group's involvement in India's pharmaceutical manufacturing.

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