Merck KGaA to boost R&D presence in China with $223 million investment

German drug major Merck KGaA is the latest in a string of multinationals to view China as a good base for acquisition and research investment, today announcing it plans to strengthen the  global R&D capabilities of its Merck Serono division by establishing a global R&D center in Beijing, China. Merck is planning to invest more than 150 million euros ($222.8 million) and create more than 200 new qualified jobs over the next four years to set up the China R&D center and conduct R&D activities in China.

Merck's move follows the news earlier this month that Swiss major Novartis plans to invest $1 billion in an R&D institute in Shanghai (The Pharma Letter November 3), as well as earlier commitments to the country's pharmaceutical sector from the likes of AstraZeneca, GlaxoSmithKline, Eli Lilly and Roche.

'The creation of the China R&D center marks a new milestone in Merck Serono's commitment to China, where there is a rising demand for more health care options,' said Elmar Schnee, executive board member with responsibility for the Pharmaceuticals business sector. 'We are committed to investing in areas that can help China to address some of its public health needs that currently are not met,' he added.