Why Merck shelled out $30B+ on R&D in 2023

In 2023, Merck & Co. made a considerable investment in research and development, spending more than $30 billion. This figure represents more than double the company’s R&D spending ($13.5 billion) in 2022.

The closest competitor in terms of R&D investment was Roche Pharmaceuticals, with a 2023 R&D expenditure of roughly $14.7 billion. This sum is less than half of Merck’s spending. Next in line was Novartis, which spent approximately $13.7 billion on R&D. Next in line was Johnson & Johnson Innovative Medicine, which spent about $12 billion.

In 2023, Merck’s revenue narrowly eclipsed that of Pfizer, which fell 41.7% from 2022 levels owing largely to collapsing demand for COVID-19 products.

In 2023, Merck invested roughly half of its revenue in R&D.

The chief drivers of Merck’s R&D spending included the following:

Read more
  • 0

Solenis-Diversey deal highlights trend for strategic, sustainability-focused acquisitions

Solenis, a specialty chemicals company serving water-intensive industries, wrapped up its $4.6 billion acquisition of Diversey Holdings, Ltd., a supplier of hygiene, infection prevention, and cleaning products to global pharmaceutical companies.

This acquisition comes amid a trend of smaller, more strategic M&A activity in the pharma sector during the second quarter of 2023. While the Solenis-Diversey deal bucks this trend in terms of deal size, it aligns with the strategic nature of recent acquisitions in the industry.

The merger creates a global firm specializing in integrated water and hygiene that operates in more than 130 countries with 71 sites and 15,000 employees. 

Before the acquisition, Solenis already served a diverse number of industrial sectors, including pulp, paper, oil and gas, chemical processing, mining, biorefining, power and municipal markets. 

Solenis-Diversey deal could be harbinger of more chemicals sector M&A deals

Read more
  • 0