Archimica and Merck KGaA seal distribution deal

By Nick Taylor

- Last updated on GMT

Related tags Merck Merck kgaa Investment

Archimica has entered into an exclusive distribution agreement with a Merck KGaA subsidiary to provide building blocks and special reagents for organic synthesis.

Under the terms of the deal Merck Schuchardt OHG, a subsidiary of Merck KGaA, will distribute Archimica products, such as building blocks and special reagents used in active pharmaceutical ingredient (API) synthesis.

Partnering with Merck will allow Archimica to benefit from the pharma’s distribution network. Andreas Meudt, managing director marketing, sales and R&D at Archimica, added that the deal with Merck will make the company’s “products available to a much broader customer base​”.

This will be supported by Merck’s global network of technical experts and marketing and sales specialists. Furthermore, the partnership will use Merck’s documentation and regulatory support, customised specifications and packaging.

Using Merck’s infrastructure with Archimica’s products “offers a lot of added value for customers​”, said Walther Johannssen, senior director of performance products at Merck, and represents “a unique package for a broad variety of applications​”.

Growth at Archimica

News of the deal with Merck came out on the same day as a financial update from Archimica. Sales grew by 16 per cent to €131m ($178m) in the 2009 financial year, driving a substantial increase in operating profit and free cash flow.

The performance means Archimica has “ample liquidity​” to implement its investment programme, which includes €2.5m to increase capacity and improve automation for key APIs manufactured at the company’s plant in Origgio, Italy. Further investment is planned at other sites.

Archimica chose to invest at this time because of the positive outlook for many of its products. By improving its infrastructure it believes it can improve its offering and equip itself to succeed in a changing market.

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