Merck KGaA sells allergy business to focus on innovative medicine

Allergopharma is Merck KGaA’s business unit that specializes in allergy products, selling its portfolio within Europe and parts of Asia, including India and China.

Dermapharm will acquire the unit, adding to its own portfolio of generic allergy medications, which also contains treatments for dermatological issues and fungal diseases.

As well as Allergopharma’s portfolio, Dermapharm, which is headquartered in Grünwald, Germany, will acquire a production site in Reinbek, adding to its main facility in Brehna.

Only three years ago​, Merck invested €42m ($45m) to open a new production building at the Reinbek site as part of its plans for ‘global expansion’.

Explaining its decision to sell the unit, Merck stated that it had completed a number of acquisitions and divestments from 2007 onwards to focus itself on its healthcare business sector, particularly in the area of ‘innovative’ medicines.

As a result, Merck will keep hold of the unit’s adrenaline autoinjector development project for the treatment of anaphylactic reactions – a product area that is heating up with several rivals to EpiPen entering the market recently​.

In 2018, Allergopharma generated annual sales of €88m. In the nine months ending on September 30, 2019, Dermapharm announced total revenues of €517m.

The transaction is expected to complete in the second quarter of 2020.