News Feature | May 23, 2014

Merck KGaA To Construct Drug Manufacturing Facility In Italy

By Cyndi Root

Merck KGaA announced in a press release that it will construct a drug manufacturing facility in Bari, Italy. The company will be investing $68 million (€50 million) to build this facility in response to the rising demand for biopharmaceuticals. The fill and finish production facility in southern Italy is expected to be operational in 2017.

Merck’s Chairman of the Executive Board made the announcement at the proposed site accompanied by Matteo Renzi, Italy’s Prime Minister, and Massimo Scaccabarozzi, President of the Italian Pharma Industries Association. Kley said, “To make Merck KGaA fit for the future, we are investing in modern, expanded production capacities.” He added that Bari has a good infrastructure and skilled employees. 

Fill and Finish Facility

Merck has fill & finish operations in Darmstadt, Germany and Aubonne, Switzerland. These productions sites are busy due to increasing demand for liquid drugs, especially infertility drugs. The new site at Bari will be dedicated to sterile filling and packaging of liquid drugs into syringes, vials, and ampoules. The investment in the facility is part of Merck’s growth program, called “Fit for 2018.”  

Fit for 2018

Merck’s Fit for 2018 transformation program was announced at the end of 2011.

The growth program addresses the changing marketplace, the increase in competition, and deficiencies within the organization. The company planned two stages. In 2012, it developed its long-term strategy and reduced its workforce across all sectors. Merck reorganized and redefined groups, divisions, legal entities, and personal relationships. It made personnel appointments in 51 key positions, 32 of which were non-German and 8 were women.  In the second phase in 2014, the company is focusing on capturing growth opportunities.  

Growth Opportunities

The new factory in Bari is part of Merck’s transformation strategy. Recently, Merck continued divesting its ophthalmology products, licensing them to Santen for marketing in Japan, Europe, and Asia Pacific. The company announced other developments in a recent press release. It said it had sold its Consumer Care business to Bayer AG for $14.2 billion and agreed to collaborate with Bayer on treatments for pulmonary arterial hypertension (PAH) and chronic thromboembolic pulmonary hypertension (CTEPH). Merck also intends to submit New Drug Applications (NDAs) for Sugammadex, an investigational medicine for the reversal of neuromuscular blockade, and Odanacatib, an investigational, novel cathespin K inhibitor for the treatment of osteoporosis.