International The Newspaper for Merck KGaA Employees No. 1 | February 2008

TOPICS

INNOVATION 7 |

A life-saving antidoteCyanokit is an effec-tive product to treatcyanide poisoning. Itwas recently ap-proved in theEuropean Union, andpreviously in theUnited States andJapan.

INSIDEINSIDE LOOKLOOK 1414 ||

Photography contestAll employees cannow participatein a photographycontest that offersthe chance to win aniPod. The “pro” edito-rial team is lookingfor the nicest im-ages that translatethe Merck values

into photos. The twelve best photos will becompiled to create the “Merck values photocalendar”.

FEAFEATURETURE INTERVIEWINTERVIEW 8 |8 |

Embracing changeIn a joint interview, division heads WalterGalinat (Liquid Crystals) and Klaus Bischoff(PLS) take stock of their first three monthsin their new positions. They also explain themost important objectives and challengesfor this year.

FEAFEATURETURE INTERVIEWINTERVIEW 4 |4 |

Rewarding goodperformanceDr. Karl-Ludwig Kley, Chairman of theExecutive Board, explains in an interviewwhy performance is the decisive competitiveadvantage for a company.

CORPORACORPORATETE 55 ||

A customized lookEmployees volunteered to participate in aneye movement study. This allows conclusionsto be drawn about the way in which theyread. The results have now been incorpo-rated into the new layout of “pro”.

CHEMICALS 9 |

Award for LCThe Liquid Crystals division recently re-ceived the “2007 Frost & Sullivan EuropeanTechnology Leadership Award.” This recog-nizes the R&D achievements made with in-novative liquid crystal materials.

MERCKMERCK SERONOSERONO 1010 ||

Rebif on a success courseThe new formulation of the multiple scle-rosis drug Rebif offers patients appreciabletreatment benefits. Merck Serono is nowlaunching it in Europe.

Many have reason to rejoice in India: An economic boom is expected in the coming years. The photo above shows an Indian man against the backdropof Fort Amber near the city of Jaipur. Photo: Getty Images

Growing demandMerck in India adapts to booming economy

India is showing impressive economic devel-opment and is also making important stridesin science. Merck is participating in these

developments. With a workforce of 1,200employees and an additional 850 franchiseessupporting the promotion of products acrossthe Corporate, Pharmaceuticals and Chemicalsbusiness sectors and Goa plant, the IndianCMG is one of the largest in the MerckGroup.

“Over the past 40 years, Merck has suc-ceeded in building an excellent reputation asa provider of quality products in India,” con-firms Dr. Marek Dziki, Managing Director.

Merck’s brands such as Neurobion, Polybion,Evion, Concor, Lodoz and Livogen have cre-ated firm niches in their respective segmentsin Pharmaceuticals. “And with the introduc-tion of Erbitux from the Merck Serono port-folio last year, the company has added anotherfacet to its profile of offering cutting-edgesolutions in therapeutic areas such as oncol-ogy.” In the Chemicals business, Merck is themarket leader in India in the reagents andHPLC solvents categories, which have beenpositively impacted due to the high growth inthe Pharmaceuticals business. “All this hasresulted in increased demand for high-quality

specialty and laboratory chemicals,” saysDziki. “The challenge facing Merck is to pro-vide the needed chemicals at very short noticein order to ensure the smooth flow of ongoingstudies and trials.” In India, Merck producespart of its range of laboratory chemicalslocally in Goa. As a supplement to this prod-uct range, the company also offers almost theentire range of products from Merck, EMDChemicals in the United States and othercompanies. (bd)

Read more about this issue’s feature topicstarting on page 2.

Gateway to the Middle EastMerck Serono’s operations developing at a rapid pace

Dear Readers,

Merck Serono recently inaugurated itsregional office for the Middle East in

Dubai, United Arab Emirates. The event,which was attended by Elmar Schnee, Headof Merck Serono, was followed by a pressconference that attracted a large number ofjournalists from across the region. Altogether,135 employees from ten different countriesreport to the regional office.

In line with the tremendous economicdevelopment across theregion, the Middle Eastoperations of MerckSerono have been devel-oping at a very rapid pace.They now hold a strongposition with leading bio-technology and pharma-ceutical products such asRebif, Erbitux, Gonal-f,Raptiva. Neurobion, Con-cor, Glucophage, Gluco-vance, Euthyrox andLodoz. Dubai is considered

How precisely do you read “pro“? What doyou read first, what do you read especiallyintensively, what do you not read at all? The“pro” editorial team wanted to answer thesequestions in order to make your employeenewspaper even more reader-friendly. Togetherwith the University of Leipzig (Germany), wetherefore conducted an eye movement study(see page 5 for more information).

The most important result in advance:“pro” is already very well oriented towardreader requirements. However, there is addi-tional potential for improvements. Andthat’s what we want to exploit, starting withthis issue. More, but in some cases shorterarticles, clear differences in the length ofarticles, and a clear layout – in brief: moredynamism and a better overview to benefitreaders.

We’re convinced that with the improvedlayout, “pro” will better meet your needs.We hope you continue to enjoy reading“pro”.

The “pro” editorial team

to be the fastest-growing city in the world.“Our new office in Dubai highlights our desireto invest in the region in order to better servethe needs of our local customers. The newlyintegrated company now has a great oppor-tunity to take this forward to develop a world-class Merck Serono operation,” said TimKneen, Managing Director of Merck Serono’sMiddle East operations. (ra)

Launching Middle East operations (from left): Dr. Abdulqader Alkhayat(Dubai Biotechnology & Research Park), Elmar Schnee, Dr. Uloff Münsterand Tim Kneen (all from Merck Serono).

NEW OFFICE IN DUBAI EDITORIAL

2 FOCUS ON pro international February 2008

“Merck is in the pole position”Thinking in large dimensions – How Merck in India is pursuing its ambitious growth objectives

Mumbai, with a population of over 18 million,is the capital of the Indian state of Maharash-tra and the most important port city on thesubcontinent. It bears the name that the citycouncil officially chose in 1995. In everydaylife, however, the former name Bombay is justas alive as the lively metropolis where MerckLimited is based in India. “pro” spoke with Dr.Marek Dziki, Managing Director, about Merck’sfuture in India.

Dr. Dziki, India is booming. The Indian phar-maceutical market alone has nearly doubledsince the year 2000, with sales increasing fromUSD 3.4 billion to USD 6.1 billion in 2006. Willthis trend continue?Dr. Marek Dziki: India today is similar to whatPoland or eastern Europe was in the 1990s. Isee it as probably the last country of oppor-tunity for investment for the next 10 to15years, with potential for returns that far sur-pass any other emerging country in Asia. Arecent report by McKinsey & Company cor-roborates this belief, which states that Indiaoffers the third largest growth opportunityglobally over the next decade. Incidentally,the pharmaceutical market is expected totriple to USD 20 billion by 2015.

What are your plans for Merck in India in thisenvironment?Dziki: We have drawn up an ambitious growthplan against this backdrop of rapid economicdevelopment in India. Our aim is to grow morethan four times our current size in the next fiveyears. We announced this last year in India atour company’s 40th anniversary celebration.

How do you plan to achieve this growth?Dziki: We will pursue a three-pronged strategy:rejuvenation of the product portfolio, optimi-zation of the sales force and expansion throughin-licensing and acquisitions. We have tre-mendous potential – all we need to do is“Think Big!”

That is a huge challenge. How is Merck inIndia preparing for this?Dziki: We need to better our strategic think-ing, learn to think in processes and make fastdecisions. One of our biggest challenges isbringing about a change in attitude, in themindset within the company. Single-digitgrowth is no longer good enough – insteadwe need to shift into a higher gear and runat full speed. For that, we need to get onboard more people who are hungry for growthof the company and ready to take calculatedrisks. On the internal front, I am keen on

establishing stronger links with Darmstadtand having greater cross-functional assign-ments between us.

And all that has to happen very quickly, ofcourse.Dziki: Undoubtedly. The challenge before usis to ensure we capitalize on the early-moversopportunity. As I see it, this opening is avail-able only for the next two to three years,implying that the next few years will be aboutspeed and delivering high top-line growth. Ifwe fail to take advantage of the opportunities

VITA

Dr. Marek Dziki

Born in 1963 in Poland1982–1990: Studiedmedicine and earned adoctorate from the MedicalUniversity in Lublin, Poland1992: Joined Merck as amedical rep1994: Manager ofmarketing and sales, MerckPoland1996–1998: Earned a Mas-ter of Business Administra-tion at the InternationalBusiness School in Warsaw,Poland1998: Head of the Pharma-ceutical division of MerckPoland2001: Managing Director ofMerck Austria2005: Vice President;Head of Strategic Innova-tion, Merck Darmstadt2006: Managing Directorof Merck Limited, Mumbai,India

before us, competition surely will, therebysecuring attractive, easily approachable mar-ket positions for years to come. In FormulaOne-speak, Merck is currently in the “poleposition”, which we need to leverage quicklywith our aggressive growth plan to achieveour target.

Where do you see the largest growth areas forMerck in India?Dziki: India’s booming economy, coupled withthe availability of skilled, well-educatedhuman resources, offers numerous potentialareas for growth in the chemicals andpharmaceutical businesses, especially in termsof pharmaceutical exports, research andmanufacturing, the food and beverages sector.However, we should not consider India onlyas a market, but also as a source of additionalservices for the Merck Group.

In which areas would you expand these ser-vices?Dziki: In addition to manufacturing and IT,with nearly 70% of programmers being basedout of India, there are other segments suchas research and development, basic research,clinical trials and back-office support. Mul-tinational corporations like Glaxo, Eli Lillyand Astra Zeneca have recognized this poten-tial and have already invested hundreds ofmillion of euros in R&D and manufacturingin India.

You also need the best employees for this. Whatreputation does Merck have as an employer inIndia?Dziki: Professionals from India have estab-lished a global reputation for their innovationand hard work. In the meanwhile, they haveachieved numerous international successes inIT and R&D. And Merck Limited in India hasbeen successful in attracting young, highlytalented people from all industrial sectors overthe past decades. (bd)

Karl Merck (left) and hisrepresentative in India,Harris, visited customersin 1914.Photo: Corporate History

Merck began cultivating ties with variousfirms in India in the early 20th century.

These ties were re-established after World WarII. The founding of Sarabhai Merck Limited inthe 1950s marked the beginning of cooperationwith the Indian group Sarabhai. Vitamin C andlaboratory chemicals were produced within thispartnership. In 1967, E. Merck (India) PrivateLimited (EMIL) was founded in Bombay with

additional Indian partners as the successor tothe trading firm Emedia Export Embh underwhich it was operating. Cooperation with Sarab-hai ended two years later. In 1981, E. MerckIndia Private Limited (EMIL) was the first com-pany of the Merck Group to be publicly listed.In 1983, a production site for industrial chem-icals was inaugurated in Usgaon, Goa andsubsequently expanded into a pharmaceutical

One of the oldest Merck subsidiariesTies with India for over 100 years

and chemical production facility in 1991. Merckalso started a Pharmaceutical Formulation andAnalytical Development Laboratory in NewBombay,Maharashtra inOctober2005. Equippedwith state-of-the-art infrastructure, this labora-tory enables Merck to react faster to marketdemands, have better quality control and ensureworld-class formulations by developing in-house various pharmaceutical forms. (bd)

Pharmaceuticalsand Chemicals atone locationThe Usgaon production site is around 45kilometers from Panaji, the capital of theIndian state of Goa. While most of the phar-maceuticals manufactured here are vitaminproducts, the focus of chemical productionis on vitamin E acetate, guaiazulene, Thia-mine disulfide and Oxynex ST. All productsmanufactured on site are exported to theGroup companies.

GMP-compliant productionThe exception is vitamin E acetate, whichis also intended for captive consumptionand is sold in the Indian market. In phar-maceutical production, there are also fa-cilities for manufacturing small volumeparenterals and soft gelatin capsules.

The most important pharmaceutical prod-ucts produced at this site are Neurobionampoules, Polybion ampoules, Evion cap-sules, Maxepa capsules, Met-Neurobion cap-sules and Depicor capsules. At present, thechemical facility is being expanded toinclude completely GMP-compliant produc-tion for Oxynex ST Liquid (an antioxidant),which is expected to start up in October2008. (bd)

INTERVIEW WITH MAREK DZIKI

HISTORY PRODUCTION IN GOA

3February 2008 pro international FOCUS ON

The entire Indianmarketing team took theopportunity to participatein the debut of theMarketing Academy onthe subcontinent.

Employees eager to learnAdvanced training for a hotly contested market – Big opportunities on the Indian subcontinent

The initiative came directly fromAsia: Marek Dziki, the Manag-ing Director of Merck in India,

inquired in Darmstadt whether itwould be possible for his pharma-ceutical marketing team to receiveadvanced training internally. Dzikiexplains: “The local market is highlycompetitive, but also offers MerckSerono the opportunity to grow sub-stantially.” Taking advantage of thissituation is the great challenge fac-ing the marketing department inIndia. “We were happy to respondpositively to the inquiry,” says Fré-déric Fack (MS/CI/Asia Pacific). Afterall, for more than three years theMarketing Academy of Merck hasoffered the opportunity to fosterpharmaceutical personnel system-atically and to provide them with thenecessary skills for competitive mar-kets.

After an evaluation phase, theMarketing Academy training expertsadapted the first module of thethree-level program to the localneeds of the team, as FabienneVanderpoel, Head of MarketingOffice, said. The one-week programstarted on October 1 in Goa. All 16members of the marketing team tookpart. Fack summed up the results,

saying, “Quality improved signifi-cantly.” He had words of praise forhis Indian colleagues: “They aremotivated, eager to learn and open-minded. Sometimes we actually hadto dampen their enthusiasm.” Topicsof instruction included marketingplans, the global standards at MerckSerono, marketing hard- and softskills and professional presentationtechniques. Makarand Kulkarni,head of marketing in India, feels thatthis is the kind of knowledge that

will boost the quality of the market-ing process on the subcontinent. Hesaid, “We learned a lot about ourindividual strengths and weak-nesses, and we can now act moreunited as a group.” Dziki came tothe same conclusion: “The traininggave our newly formed team excel-lent orientation.”

Last but not least, Frédéric Fackalso views the training of employeesat the local site as a strategic invest-ment. While attempts to entice tal-

ented personnel to work for otheremployers are not uncommon incentral Europe, the situation in afast-paced market like India appearsto be even more drastic. “By trainingpersonnel, we’re showing them thatMerck trusts them and that it’s pos-sible for them to develop furtherwithin our company,” reports Fack.

Fack cites another benefit of thedebut of the Marketing Academy inIndia: “We’ve seen that we’re capableof adapting our methods and content

to another culture.” Now the trainerswant to make sure that the resultsare actually being implemented. Atleast once a quarter, Fack makes thetrip to India to keep an eye on themarketing team’s progress. Mean-while, the Marketing Academy isalready adapting the second moduleto additional local needs. At any rate,Kulkarni is already looking forwardto the next segments: “Then we canadapt the content even more spe-cifically to our needs.” (os)

Every young person has dreams.One would like to become adoctor; another would like a

high position in a multinationalcompany. However, many of themcannot achieve their dreamsbecause they are too poor andtherefore do not have access toeducational establishments. TheMerck India Charitable Trust hashelped me generously and mag-nanimously; it is my ‘family’. I’mthankful that I’m a part of thisfamily.” Abhishek Karekar, one ofthe first scholarship recipients ofthe Merck India Charitable Trust(MICT), expresses the sentimentsshared by many of his fellow recip-ients.

A good education is the precon-dition for social advancement,

opens up good career opportunitiesand enables a person to prosper.That’s why Merck in India estab-lished the MICT in 2005. It awardsfinancial aid in the form of schol-arships to intelligent youths whootherwise would not have any pos-sibility to continue going to schooldue to a lack of financial resources.The scholarships cover the hightuition costs and course fees.Selected students receive thesescholarships for the rest of theiracademic careers. The only thingthe MICT asks for in return is thatthe scholarship recipients pursuetheir goals with dedication andcontinue to perform at a highlevel.

Experts who have been educatedat Indian universities rank among

the best in the world, but they stillrepresent a minority in the country.“If India wants to stay at the sameeye level with other countries inthe long run, the number of youngpeople who have access to highereducation must increase,” saysMarek Dziki, Managing Director ofMerck India. “Merck needs excel-lent employees. This was also areason why we established the con-cept of ‘sponsoring talented youths’among the weaker in society.”

Currently, the scholarship isawarded only to students fromMumbai. In the three years since itwas founded, the MICT has financedthe education of 78 students. Lastyear alone, more than 450 applica-tions for support were submitted,of which 32 were approved. (bd)

Making dreams come trueSponsorship provides talented Indian youths with access to education

Recipients of scholar-ships from the MerckIndia Charitable Trustgave Jon Baumhauer athank-you gift at the40th anniversarycelebration of MerckLimited, India.

The Republic of India is a union of 28 states and seven federally governedunion territories. With a total population estimated at 1.12 billion people,India is the second largest country in the world in terms of population and isexpected to become the most populous by 2030.

Measured in terms of purchasing power, India is the world’s fourth largesteconomy. India has made rapid economic progress in the past decade, and thecountry’s standard of living is projected to rise sharply over the next 50 years.However, the country still currently battles widespread poverty, illiteracy,malnutrition and environmental degradation.

Growth in India is driven by the service sector, which accounts for around55% of gross domestic product. The industrial sector, such as software IT andbiotechnology, constitutes about one quarter of GDP. Agriculture accounts foronly 18.5% of GDP, even though a good two-thirds of the population earntheir livelihood in this sector.

Mumbai, formerly Bombay, is the center of industry, finance and commercein the booming Indian economy. It’s also where Merck Limited, India is based.As Shanghai is for China, Mumbai is the symbol of economic upswing in India.With over 18 million inhabitants, Mumbai is one of the world’s largest met-ropolitan areas. By 2015 the harbor city is predicted to reach 22 millioninhabitants, making it the world’s second most populous city. Only Tokyo isexpected to have a larger population at that time. Over 30% of India’s taxrevenue is generated in the greater Mumbai area. (bd)

Megametropolis Mumbai

Land of superlatives

MARKETING ACADEMY

AID FOR INDIA

4 FEATURE INTERVIEW pro international February 2008

“We will reward good performance”How managers and employees should bring the company’s strategy and objectives to life

Why is performance essential for our business?What are the Chairman’s expectations ofmanagers and employees and what can theyexpect from Merck? Dr. Karl-Ludwig Kleyanswers these and other questions in thefollowing interview with “pro”.

Dr. Kley, you have been Executive Board Chair-man for nine months now. What are some ofthe lasting impressions of 2007?Dr. Karl-Ludwig Kley: The year 2007 will godown in company history as an extraordinaryphase in our development. We conducted acapital increase and were admitted to theDAX. We tackled the Serono integration withgreat success and further focused our businesswith the sale of Generics. We also began aprocess of implementing a more global busi-ness model by reorganizing some centralfunctions and processes. And while all thiswas underway, we never lost sight of ourbusiness. We achieved good organic growthacross all our businesses.

What were some of the specific business suc-cesses in your view?Kley: We were especially successful withErbitux, which achieved superb growth. Wewere also very pleased by most of the otherMerck Serono products. In Consumer HeathCare, revenue growth continues to exceedmarket growth and the division has a strongbrand portfolio. In Chemicals we managedto grow in a diverse market environment andsucceeded in keeping in particular our mar-gins stable in Liquid Crystals in spite ofemerging competition. These are good resultsthat provide us with an excellent basis formoving forward into 2008.

What do you expectMerck’s main chal-lenges will be in2008?Kley: Merck Chemicalsoperates in businesssegments that are highly dynamic and com-petitive. Our Liquid Crystals business willbenefit from flourishing LCD applications,but will face increasing challenges from ourcompetition, requiring even stronger perfor-mance both in terms of technologicalinnovations and at the service level. On theother hand, most of the PLS market segmentsare mature markets, where we need to focuson winning market shares and launching newinnovative products.

Let’s now look at the Pharmaceutical business.What’s the situation there?Kley: In the pharmaceutical markets servedby Merck Serono, health care cost contain-ment measures will put increasing pressureon our margins, requiring that we find moreefficient ways to develop and market medi-cines. In Oncology we have a solid pipeline,but are operating in by far the most crowdeddisease area. We have managed to stabilizeour market leadership position in Fertility,but need to work hard to maintain and growthis position. And for our blockbuster drugRebif we need to ensure that we make thelaunch of the new formulation of Rebif agreat success. CHC is profitable in theconsumer markets it serves, but the key chal-lenge here will be to grow even faster throughboth organic growth and acquisitions.

What does this mean and what role will thecorporate strategy play here?Kley: In order to succeed in these environ-ments, we must reinvent ourselves continu-

ally and lead our markets by way of innova-tions. We need to be clear about where we

are heading, use ourresources as efficientlyas possible, and askourselves everydaywhether we are still ontrack. Therefore, wecommunicated a new

strategic direction in 2007 and established astrategy planning process that will allow usto follow our progress and make adjustmentsalong the way.

What are our main priorities?Kley: Our priorities are profitable revenuegrowth, innovation, quality, superior cus-tomer service and cost management. Highperformance in these areas will significantlyimprove our competitiveness and our strategyis the means to get there.

What are the next steps in the implementa-tion of the strategy?Kley: Successful implementation of our “Sus-tain. Change. Grow.” strategy means thateverything we do – regardless of corporatelevel, country or division – needs to beclearly linked to this strategy and in line withour core values. Every Merck employee needsto understand the strategy and know whathe or she can contribute to secure oursuccess. This is why we will continue toencourage managers to communicate aboutthe strategy and its implications for everyemployee.

In your opinion, what are the key drivers forimproving Merck’s performance?Kley: Good people. Plus a working environ-ment that motivates and enables them toperform to the best of their abilities. Ourvalues point to a culture of performance – weneed candid and respectful dialogue andfeedback, we need to continuously challenge

ourselves and keep our eye on the competi-tors. What may be good enough today maynot be good enough tomorrow.

How do you plan to ensure that this focus onperformance is lived in daily business?Kley: To live this culture, it must be embed-ded in our systems and processes. For exam-ple, a new performance management systemwill be piloted in someunits this year androlled out for theentire organization in2009. It will requirethat all personal objec-tives are directlyrelated to concretestrategic objectives and will be designed tomeasure not only whether the objectiveswere reached, but also measure how theywere reached – was it in line with our valuesor not? The updated Merck CompetencyCompass provides the specific guidance onthe behavior we expect from all managersand employees, and this will be the frame-work for providing feedback on performanceas well as supporting all development pro-grams. These are just some examples of howwe are addressing the topic of performanceconcretely.

What behavior do you expect frommanagers?Kley: Based on my experience, a clear focuson performance in everything we do willprovide the decisive competitive advantage.Managers need to motivate and mobilize theirteams so that everyone contributes to ourbusiness objectives as much as possible. Theyare responsible for communicating to employ-ees where their work fits into the overallstrategy and being role models for the values.Managers should develop their team membersand challenge them to take calculated risksand new responsibilities.

And from employees?Kley: While managers clearly have afacilitating role to play, I expect all employ-ees to challenge themselves with new proj-ects or tasks and, as they encounter newopportunities, to further develop their skillsand improve their performance accordingly.They should ask their managers for theinformation and guidance they need to do

the best job they can.Above all, everyoneat Merck is asked tobring our values tolife. This is crucial,because the attitudewe demonstratetowards each other

and our customers says more about us thananything else. This common culture is thekey to differentiating ourselves from ourcompetitors.

And what can managers and employeesexpect from Merck?Kley: We will continue to provide clear,structured communications about our strat-egy and values and what they mean foremployees. Managers and employees shouldexpect more alignment with goals and alsoaccountability for reaching them. The Exec-utive Board is also committed to recogniz-ing and rewarding good performance in avariety of ways. Talented, dedicated indi-viduals will have the opportunity to havechallenging and rewarding careers in aglobal, integrated company.

Do you have any final thoughts you wouldlike to share?Kley: 2007 was a year of laying the ground-work and developing our plans. 2008 willbe the year of execution. We have greatopportunities for success and I look forwardto working with all employees to make thema reality. (jol)

Dr. Karl-Ludwig Kley, Chairman of the Executive Board. Photo: Moog

“A focus on performancewill provide the competitive

advantage.”Karl-Ludwig Kley

“We must reinventourselves continually.”

Karl-Ludwig Kley

INTERVIEW WITH KARL-LUDWIG KLEY

5February 2008 pro international CORPORATE

The mini-cameras on the helmet register each tiny eye movement. Claudia Flauaus (Works Council Darmstadt) reading “pro” as part of the eyemovement study. Photo: Danner

A customized look for “pro”Eye movement study leads to improvements in layout

At first glance, the bright, royal-bluebicycle helmet looks completely nor-mal. But why is Claudia Flauaus, a

member of the Works Council at the Darmstadtsite, wearing it while reading “pro”? And whyare there two black mini-cameras on the frontof the helmet, each no bigger than a matchbox,with thin cables trailing to a PC a good meteraway? Well, Flauaus signed up to participatein the eye movement study, as did 39 otherMerck employees. The result is the new layoutfor “pro”, used for the first time in thisissue.

Scanning with your eyesWhen you read a newspaper, your eyes scaneach page. Your gaze first rests on the im-ages, and then on the headings. If you’re in-terested enough, then you start reading thearticle. This all happens in fractions of a sec-ond, without your being consciously aware ofit. However, even the slightest movements ofthe eye do not escape the cameras on thehelmet. They capture your eyes’ roamingmovements across a screen as well as theirlingering at certain points. “In the eye move-ment study, we measure when, how long, andin what order the subjects gaze at or read aparticular area of the page,” explains MichaelHaller, the journalism professor at the Univer-sity of Leipzig (Germany) who conducted thestudy for “pro”. “The process reveals strengthsand weaknesses of the layout, page design andtext presentation.”

Each participant was presented with anissue “pro” hot off the press and not yet dis-tributed to employees and given half an hourto read it. On the whole, readers tap into and

use “pro” well, as the study revealed. Theyoften read completely through the individualarticles more than the average, and the ratesat which they stop reading are below average.Nevertheless, there was still some room forimprovement. “When Merck employees read‘pro’, we want them to do more than just getto know the key topics in the company andto understand strategies and organizations,”says Wolfgang Westphal-Petersen, who isresponsible for the publication of “pro” as

head of Corporate Internal Communicationand Publishing. “We also want them to havefun reading ‘pro’. For them to gain a practicalbenefit.”

Success based on contentThe new look for “pro”, designed using theresults of the eye movement study – which bythe way was a first in employee magazines– will play a role in that success. However, itisn’t a revolutionary change, but rather a

further development. The previous columns– Focus, Innovation, Merck Serono, Chemicals,Corporate, Inside Look – were kept. However,the pages now feature improved structuresand greater clarity. The length of the articlesvaries more greatly based on the importanceof the content. Small portions and visuallynoticeable divisions between the articles makereading easier. The goal is to guide readersthrough the newspaper while preventing themfrom getting tired or lost in it. (bd)

Dealing properly withpoisoningHow quickly it can happen: A dangerouschemical splashes the eye of a Merck em-ployee or an employee of a Merck customer.Merck has taken precautions to deal with suchan emergency. For every individual productthere are safety data sheets that preciselydescribe what needs to be done if someoneaccidentally gets the relevant substance intheir eyes or on their skin, swallows or inhalesit. The safety data sheets are available in 27languages so that they can be understoodworldwide. They can be downloaded from theMerckNet via Saphir.

Safety data sheets continually updated“We’re responsible for our products and forthe people who use them.“ Michael Grubershares this guiding principle with his teamcolleagues in EHS PI, who constantly updateall safety data sheets to reflect the latest sta-tus of medical knowledge.

Expert medical advice availableClose cooperation with the Poison ControlCenter at the University of Freiburg (Germany)has proven to be invaluable. With supportfrom experienced physicians, special instruc-tions on what to do in the event of poisoningare compiled for every Merck product. “We’renot merely concerned with providing world-class quality of our products, but also withproviding world-class hazard communica-tion,” Gruber explains. Those who need fastand direct assistance can also call the emer-gency hotline (telephone ++49 761/19240)and obtain medical advice from the physiciansin Freiburg immediately. (ml)

Friday, 9:06 a.m.: A fire breaks out in theOnahama production plant. The scenariofor the crisis simulation drill conducted

by Merck Japan was prepared down to the lastdetail. “However, we were confronted byanother challenge,“ reports Hisashi Kai, actingHead of the Crisis Team in Tokyo. “On thesame day, a typhoon hit the Tokyo area, caus-ing delays on several railway lines.“ KlausDiehl, President of Merck Japan, who was ona train, was therefore only able to support the

crisis teams in Onahama and Tokyo an hourlater.

Telephones rangnonstopA hotlline was set up between the two loca-tions. Onahama informed Tokyo about thesituation locally, Toyko provided press re-leases for the neighborhood, information forthe police, public health authorities and thefire departments. The scenario escalated due

to an explosion in a hazardous materialswarehouse. Passers-by were injured by flyingdebris and several employees were missing.The crisis team telephones in Tokyo and Ona-hama rang non-stop.

The drill ended with a simulated pressconference at both locations. During the anal-ysis that followed, the agency that plannedand executed the drill gave Merck Japan avery good rating – 4.0 out of a possible 5points. (bd)

No one expected a typhoonTop marks for crisis training

Crisis simulation drill atMerck in Japan: MerckJapan President KlausDiehl and members of thecrisis team respond tointense questioning fromthe media after the fictiti-ous fire in Onahama.Photo: Hoshi

NEW “PRO” LAYOUT

CRISIS SIMULATION DRILL IN JAPAN SAFETY DATA SHEET

6 INNOVATION pro international February 2008

A brilliant appearanceThe new “Scenic” pigments – A more refined and subtle glitter

Asuccess story continues: In 2004, thefirst Miraval pigments were launchedunder the brand name “Magic”. They’re

a bestseller today, and for good reasons: AsProduct Manager Silvia Rosenberger (PLSPigments) reports, “This combination of bril-liance and transparency is unique.” Manu-facturers of cosmetics packaging especiallyappreciate the pigments, which give theirproducts a sparkling appearance. “AlthoughMiraval costs a bit more, it has caught onwith a lot of customers,” says Rosenberger.

Because the glittering pigments are sopopular, Merck researchers and marketingexperts, always tracking the latest trends,have now added a new variant to the prod-uct range. The pigments are called Scenic,and their composition is identical to that oftheir established Magic counterparts, butwith one essential difference: They’re smaller.Magic pigments measure between 20 and200 micrometers; the Scenic pigments areexactly half that size.

As a result, the glittering is more refinedand subtle. However, the new pigments retainall the advantages of the Miraval productrange. They’re brilliant, pure in color andtransparent. Another benefit is that flowlines can barely be seen in plastic injection-molded parts, and even at low concentra-tions, the resulting gloss is uniform. Testsalso revealed that the pigments are ideallysuited for coating paper and printing pack-ages.

It’s their structure that gives the pigmentstheir brilliant effect. The substrate flakes aremade of borosilicate glass, which allows lightto penetrate considerably better than theparticles of natural mica that form the basisof the Iriodin range, for example.

The gloss is a bit different, and so Miravalalso complements the portfolio in terms of

color. The pigments are available in silver-white, turquoise, copper and gold. The coloris not achieved by using different ingredi-ents. Rather, the thickness of the titaniumdioxide coating of the glass flakes affects

the way light refracts and in this way pro-duces a different color.

Changing the coating thickness by a merethree nanometers gives the material a dif-ferent look. “We control nanometers and

produce tons,” says Dr. Wolf-Dietrich Weber(G FA 2) in describing the production chal-lenge in Gernsheim. The amount of workwon’t decline in the future if Scenic’s successis similar to that of Magic. (os)

New regionalresponsibilitiesRegional responsibilities have been reas-signed on both the Executive Board and inthe various countries.

On the Executive Board Dr. Bernd Reck-mann is responsible for Germany and thusalso for Human Resources at the Darmstadtsite.

Elmar Schnee is responsible for Europe(including the Baltic States, Belarus, Mol-dova and Ukraine), Canada, Latin and Cen-tral America, Africa and Middle East.

Walter W. Zywottek is responsible forAsia (including the former Soviet Unionstates), Australia and New Zealand.

No regional responsibility has beendefined for the United States. The companiesEMD Serono and EMD Chemicals reportdirectly to the respective division or businesssector.

Merck representativesin many countriesFor countries that have several Merck com-panies, Merck representatives have beenappointed.

These are David Garmon-Jones for Austra-lia, Dr. Richard Zhang for China, Pierre-HenryLongeray for France, Antonio Messina forItaly, Klaus Diehl for Japan, Elmar Schnee forSwitzerland and Don Cowling for the UnitedKingdom. (bd)

Since December, around 50 users at MerckSerono Japan have been working witha new, tailored IT application for Cus-

tomer Relationship Management (CRM). Thistool permits the targeted collection and useof information collected by sales force mem-bers from regular visits to customers over theyears. The aim is to facilitate interactionsbetween the medical sales force and the cus-tomers of Merck Serono. The system is beingused in the Oncology, Fertility, Neurology and

Dermatology businesses as these areas typi-cally call for intensive and individualizedcustomer care. For example, post-marketingsurveillance is mandatory in the pharmaceu-tical business in Japan and other countries.With the new CRM system, this requirementcan be met and monitored even better.

A learning experienceBased on the standard IT application knownas Siebel, which is used widely at Merck

Serono, it was possible to realize the CRMproject in Japan in less than four months.Considerable efforts were undertaken to adaptthe software for users in Japan, particularlyin view of language and usability. From an ITperspective, the biggest challenge was tocover and take into account all locally re-quested functionalities with the existing stan-dard Siebel CRM application. IS Pharma proj-ect leader Jean-Luc Caut explains: “Each newroll-out typically delivers enhancements andexperiences from which other CMGs will ben-efit, too. In this way, we can contribute to thecontinuous improvement of business by shar-ing best practices on a global scale.”

(fb/pae)

Optimizing customer careCustomer Relationship Management at Merck Serono Japan

The project team is pleased by the success of the CRM application: (from left): Kaori Ikeda, SatoshiIto, Mitsuko Shinagawa, Masaya Mizushima, Takako Inaba, Akira Nagai, Kohei Yaegashi and YoshioSuzuki. Photo: Merck Serono Japan

The first impression of Wayne Paterson,President of Merck Serono Japan, after thehand-over of the new CRM system wasthoroughly positive: “We are highly satisfiedwith the performance, availability and useracceptance here in Japan. I would like tothank the entire project team consisting ofmembers from our local IT and Marketingdepartments as well as CIS colleagues fromGeneva and Rome for their support. Theydid a fantastic job!”

Satisfied with performance

The new Mirval Scenicpigments provide glittereffects in copper, turquoiseor gold.Photo: PLS/Pigments

THE MIRAVAL FAMILY GROWS

MERCK SERONO IN JAPAN MERCK WORLDWIDE

7February 2008 pro international INNOVATION

Darmstadt, Semoy and Mexico as wellas the new biotech plants in Vevey,Switzerland, are the first Merck sites

where MS Technical Operations specialistswill launch a new production control systemin the Pharmaceuticals business sector. Thesoftware, called PAS-X, is manufactured byWerum in Lueneburg, Germany. It is basedon a manufacturing execution system (MES).Once it is installed, PAS-X makes manymanufacturing aspects simpler and morereliable.

In the future, the system will accompanythe production process from the verymoment that an order leaves the SAP sys-tem. PAS-X will monitor everything in thefuture, from retrieval of the raw materialsthroughout all manufacturing steps, untilthe finished product arrives in the ware-house. The system won’t allow the next

step to be performed until an employee haselectronically signed off on a completedstep. “This makes errors during productionextremely unlikely,” emphasizes ProjectManager Reiner Nischwitz. It’s effective,reliable, fast and eliminates tedious paper-work. Previously, up to 100 pages of printeddocumentation were required for everybatch. After the changeover, this effort willbe superfluous.

Previously, an older MES was used inDarmstadt. The other sites are entering newterritory. The biotech production facility inVevey will introduce the new technologyright from the start. “The system used inDarmstadt had started to show its age andthe regulatory requirements became stricter.Then the Serono integration came. Movingto a global system was therefore logical,”emphasizes project leader Nischwitz. (os)

Paperless productionFour Merck Serono sites switch to a modern production control system

In January, the MerckNet pages of the Chem-icals business sector were relaunched witha new design and updated contents. Employ-

ees can now use the new Chemicals intranethomepage to access the myPronet portal andthe Merck Chemicals Internet with the Chem-icals portals. This means that all relevantcontents are available immediately via a sin-gle internal portal. This ensures that employ-ees have the same access to information ascustomers and other external target groupsdo. It also ensures that all content appearsonly once online. In this way, duplications,which involve unnecessary work and potentialsources of error, can be avoided.

Clear commitment to updatingthe site regularly“We made every effort to streamline the struc-ture. In the future, the focus will be on regu-

Relaunch on the MerckNetAll important contents now accessible via a single portal

Closed-space fires pose a very high risk of cyanide poisoning. Large-area fires pose more dangers today than in the past because the risk offlashover is higher.

Cyanokit has been proven to be a life-savingantidote for cyanide poisoning.

A life-saving antidoteCyanokit proves its safety and efficacy in treating cynanide poisoning due to fire

With Cyanokit, recently approved inthe European Union, and previouslyin the United States and Japan,

Merck Serono offers a safe and effective prod-uct to treat people for cyanide poisoning,either at the scene of a fire or accident or inhospitals.

Rapid and aggressive therapy, consisting ofsupportive care and antidote administration, isvital in cases of cyanide poisoning. Thanks toits unique mechanism of action and ease ofuse, supported by clinical data that have shownits effectiveness, Cyanokit is an ideal antidotewith great life-saving potential.

“The favorable safety profile of Cyanokitis very important in an emergency situationrequiring rapid, life-saving treatment,” saidDr. Jean-Luc Fortin, MD, former Chief Medi-cal Officer of the Paris city fire department.

The Emergency Care business unit, created

in September 2007 as part of CommercialEurope operations, is in charge of the Euro-pean launch of Cyanokit. With the mission tocreate a product line to treat life-threateningconditions and save lives, the business unitalso offers drug therapies including Dantrium,for the treatment of malignant hyperthermia,and toxogonin, an antidote to organophos-phorus poisoning.

Emergency preparedness for potentialchemical terrorismAcute cyanide poisoning can be fatal, espe-

cially when it results from smoke inhalation.The increase in demand for a safe and easy-to-use cyanide poisoning antidote is due tomeasures to counter the threat of terrorism,especially subsequent to the terrorist strikesof September 11, 2001 in the United States.

Another important advantage of Cyanokit

is that in contrast to other therapies, whichcan only be used after a diagnosis of cyanidepoisoning has been confirmed or are not suit-able for the treatment of smoke poisoning, itcan be administered before the patient reachesthe hospital.

High risk of flashoverStructural fires are more dangerous today thanin the past because the risk of flashover in ashorter period of time. The reasons for this arethe lightweight construction of buildings aswell as the use of synthetics in building ma-terials and furnishings. Any materials thatcontain both carbon and nitrogen are capableof producing cyanide during a fire, especiallyimmediately before and after a flashover, whenthe temperatures are particularly high and theoxygen levels are particularly low. Flashoveris the rapid progression of a fire from a small,

slowly developing fire to a much larger anddangerous fire where all flammable surfaceswithin an enclosure are involved. Availabledata suggest that in closed space or low ven-tilated fires, the risk of cyanide poisoning isjust as high as that of carbon monoxide poi-soning. Moreover, blood concentrations ofcyanide are directly related to the probabilityof death. (ral)

Cyanokit – hydroxocobalamin for injection,a vitamin B12 precursor – is used to treatacute cyanide poisoning. It acts by directlybinding cyanide ions, which produces thenon-toxic substance cyanocobalamin(vitamin B12), which is excreted by thebody.

What is Cyanokit?

larly updated pages. We want to reduce thenumber of ‘static’ pages. After all, an intranetsite lives from being up-to-date and onlybecomes attractive when really new topics arepresented,” says Kurt Kropp, responsible forthe website and the MerckNet within Com-munication Management Chemicals. “This isbig challenge for us, but one that we’ll meetwith everyone’s support.

All colleagues are invited to help optimizeour Chemicals intranet with their proposals.The integrated Merck Chemicals homepagewill be the foundation for presenting all thebusiness sector’s activities to the global orga-nization.” (sr/pae)

Please address questions and suggestionsto CMC, Kurt Kropp, extension 2361, BirgitMarket, extension 7036 or by e-mail toChemForum@merck.de.

FAST HELP IN AN EMERGENCY

NEW CONTROL SYSTEM CHEMICALS

8 FEATURE INTERVIEW pro international February 2008

“Embrace change!”LC holds a strong position as global market and technology leader – PLS focusing on innovations and new regional markets

In November, executive management changestook place in the LC and PLS divisions. WalterGalinat, previously head of PLS, took over theleadership of the LC division after Dr. PaulBreddels left the company. At the same time,Klaus Bischoff – previously Country Managerof the Merck Group in Taiwan – became thenew head of the PLS division. “pro” spokewith the two division heads about their firstthree months in office and their goals for thefuture.

Mr. Galinat, what are your feelings aboutleaving the PLS division, which you led andhelped to build up since it was established in2006?Walter Galinat: Actually, PLS is the result ofpermanent change that already started in2000 with the restructuring of the formerChemicals divisions. These changes presentedgreat challenges for employees and for me,but they also gave us the opportunity tochange a lot of things for the better. Combin-ing several divisions was a tremendous strainon employees, but at the end of the day webecame a well-oiled and successful team. I’dlike to cordially thank all PLS colleagues onceagain for their commitment and flexibility.I believe that the PLS division is now in goodshape. I handed over my responsibility forthe division with some melancholy but alsowith peace of mind to Klaus Bischoff.

Mr. Bischoff, after nearly four years in Taiwan,you’re now back in Germany. How would yousum up your work in Asia? What did you learnduring your time there? Were there any per-sonal lessons?Klaus Bischoff: I believe that I can take alonga lot of what I learned. Actually, from thefirst to the last day, my time in Taiwan wasone change process. This started with the saleof the EC division, continued with the entryinto the pharmaceutical business in Taiwan,the establishment of the Liquid Crystal Cen-ter Taiwan – a state-of-the-art facility for LCmixtures, the sale of the ITO glass business,and most recently the Serono integration.Above and beyond this, our businesses inTaiwan enjoyed constant growth. Like manycountries in Asia, Taiwan is a very dynamicmarket. The people have a very open, prag-matic approach to many things and are pre-pared to take calculated risks in order toachieve their objectives. Quickly executingprojects and meeting customer expectationsare what counts. No doubt this working stylehas left its mark on me.

You’re already an expert for part of the PLSportfolio as you were responsible for thecosmetics business from 1998 to 2004. Towhat extent have you already familiarizedyourself with theother areas of thePLS business?Bischoff: Actually,I’m from the pig-ments and cosmeticsarea, but as a resultof my jobs in Braziland Taiwan, I’ve got-ten to know andshape all the Merckbusiness fields andrealize which are the most important businessdrivers. This of course doesn’t mean thatthere’s nothing left for me to learn. I learnsomething new every day, and hold talks witha wide range of employees and areas of thecompany in order to find out more about thecurrent situation of PLS. As PLS is a veryinternational and diversified division, I’ve

also traveled to many CMGs throughout theworld in recent weeks.

Mr. Galinat, let’s talk about your new area ofresponsibility Liquid Crystals: In terms ofmarkets, products and customer structure,this division differs entirely from PLS. Is thisa big change for you?Galinat: LC is now in a phase where thestormy growth of earlier days is transitioningto less rapid, but still solid growth. This is atotally normal process. The Merck virtuessuch as reliability, innovation and speed inimplementing customer requirements that arealso important for PLS now increasinglyapply to LC as well. We’ve got to face moreintense competition. Therefore, from a man-agement perspective, there are significantparallels between my new position in LC andmy previous responsibilities within PLS.

Merck LC is both the technology and globalmarket leader. Yet the competition is also

heating up here. Whatstrategies will you use torespond?Galinat: We must livecustomer proximity,seek out a dialog withcustomers locally,develop new mixturesflexibly and, of course,maintain a significanttechnological lead.That’s why we’re invest-

ing in research more strongly than everbefore – in 2007 our R&D spending wasaround 20% more than in the previous year.Apart from conventional LC technology,which will certainly dominate the market forsome time to come, we also want to have afoot in the door as far as new technologies,for example OLEDs, are concerned.

Here’s a question for both of you: What areyour most important goals and challengesup until the end of 2008?Galinat: We have a very ambitious operatingplan for 2008 and our primary goal has gotto be to achieve it. Inorder to ensure oursuccess and the highquality of our prod-ucts, it will be neces-sary to adjust somestructures and pro-cesses. For example,we want to harmonizethe processes at thethree LC mixture sitesin Japan, Korea andTaiwan. What’s behindthis is the idea of best practices, or learningfrom each other, as well as the possibilityof being able to step in for other sites andto meet customer needs in the event of anemergency. We’re planning to furtherincrease our spending on research anddevelopment. Another objective is to stepup employee advanced training, for examplewhen it comes to customer service. A firststep here was our new Customer Relation-ship Management system.

Bischoff: PLS has grown solidly in recentyears and established a good and effectivestructure under the leadership of WalterGalinat. A special area of focus for me willbe to continue the profitable growth, totallyin line with the meaning of the core mes-sage of the Merck strategy: “Sustain.Change. Grow”. Growth will certainly bevery important. This will be achieved bydelivering innovations, by expanding ourcustomer base for existing projects and bycapturing new regional markets, for exam-ple in Asia and the United States, where

we can certainly expand our business withseveral products even further. Another wayto grow further could be through acquisi-tions. For example, at the end of December2007, we acquired Solvent Innovation

GmbH of Cologne inorder to strengthenour Ionic Liquidsbusiness. This is atechnology wherewe’ve made impor-tant developmentsourselves and arenow expanding step-by-step with helpfrom this acquisition.Overall, PLS plans tostay the course of

pursuing solid growth, via both organicgrowth and acquisitions.

What final message would you like to give tothe Merck workforce?Bischoff: Embrace change! It’s part of lifeand part of the Merck success story.

Galinat: Leverage our strong position as theglobal market and technology leader – witha healthy dose of self-confidence but withoutbeing arrogant about it.

In your opinion, to what extent will thecooperation between PLS and LC change?Bischoff: In view of the whole Merck Chem-icals business, it certainly won’t hurt thatboth our personal and working relationshipsare very good. As a result, Merck Chemicalsis moving closer together.

Galinat: Regular communication is veryimportant to us here. Why should things thatwork well in one division not also succeedin the other division? (pae)

Well-known faces at Merck, but now with new areas of responsibility: In an interview, division heads Walter Galinat (LC, left) and Klaus Bischoff (PLS)take stock of their past work and explain the most important objectives and challenges of their respective new functions. Photo: Paeschke

“A special area of focus for mewill be to continue the profitable

growth, totally in line with themeaning of the core message of

the Merck strategy:“Sustain. Change. Grow”.

Klaus Bischoff

“We must live customer proxi-mity and of course maintain asignificant technological lead.

That’s why we’re investingin research more strongly than

ever before.”Walter Galinat

INTERVIEW WITH WALTER GALINAT AND KLAUS BISCHOFF

9February 2008 pro international CHEMICALS

“Color Compendium” is an importanttool for customers to design theirproducts with even more of a specialeffect. Photo: Pigments

At the awardceremony (fromleft): Hans-JürgenLemp (Marketing &Sales LC), SandraRamge (Communi-cation Manage-ment Chemicals),Dr. Klaus Bofinger(Polyproduction &Development ),Dr. Roman Maisch(Marketing & SalesLC), Dr. AlasdairJelfs (Research &Development LC)and a representa-tive of Frost &Sullivan.Photo:Frost & Sullivan

Dr. Arnulf Heubner: “The only thing thatwill increase is the safety of patients.”

Photo: Schmidtchen

“Check the origin”Drug excipients need to be monitored better

Binders, stabilizers, fillers, preserva-tives and coatings: Medically effica-cious substances are by far not theonly substances contained in drugs.Excipients make up more than 90%of the entire pharmaceutical product.Astonishingly, formal quality stan-dards still do not exist. It’s a situationthat the European Chemical IndustryCouncil (Cefic) would really like tochange. Arnulf Heubner, Head of PLS/LSS/Pharma and Food Raw Materials,contributed substantially to a positionpaper on this topic. In a “pro” inter-view, the chairman of the Pharma-ceutical Business Committee of theEFCG, a sectoral association withinCefic, explains why.

As the New York Times reports, coughsyrup containing the antifreezediethylene glycol was responsible foraround 200 deaths in Panama in2006. In the United States, counter-feit toothpaste from the Far East wasrecalled due to the same substance.Is this a danger that could alsothreaten Europe?Heubner: The danger is already here.Hasty product recalls have alreadytaken place in the EU. There arematerials in the market for whichit’s very difficult to determine whereand under what circumstances theywere manufactured.

How come the quality of pharma-ceutical active ingredients is checkedbut that of the exicipients isn’t?Heubner: Just an aside: we’re alsonot satisfied with the situation relat-ing to active ingredients. A statutoryframework does in fact exist, how-

ever, there’s a lack of execution. Thefact is that excipients, which accountfor 90 to 99% of a drug, are simplynot checked thoroughly enough.And I don’t see any plausible reasonsfor this. Many manufacturers adhereto GMP (Good Manufacturing Prac-tice) in their production operationsand consequently deliver verifiablequality. Others don’t and can offertheir product for less money – at theexpense of safety.

What are you calling for?Heubner: We want excipients to beviewed in a differentiated manner.Certifiable standards need to beintroduced for already tested sub-stances. For untested excipients orthose that are injected, stricterrequirements must apply and cor-respond to those for active ingredi-ents. No one wants to be injectedwith something of unknown originwhose safety hasn’t been carefullychecked or verified.

That sounds good, but it could bedifficult to implement if a manufac-turer is located in an entirely differ-ent part of the world.Heubner: In plain language, thismeans that qualified inspectors areworking in the countries of originand certifying the manufacturingfacilities. Like what the nationalregulatory authorities do in Ger-many.

From the consumer’s perspective:this will raise the costs of productionand as a result end prices will rise aswell.Heubner: False. The volume of theglobal pharmaceutical market isaround USD 600 billion. Only 0.5%of this is attributable to excipients.If they would become a bit moreexpensive, this would have noimpact on the end prices. The onlything that will increase is the safetyof consumers and patients.

An ambitious goal. Do you reallyexpect to succeed?Heubner: It’s clear that the processwill need time and involve a greatdeal of work. But we’re very certainthat we can get something moving.There’s already a strong headwind.We consider that to be a good sign.We are being taken seriously. (os)

Tool for customersStyling book with special effect color combinations

The marketing experts at Print-ing, Plastics & Security (PPS)within PLS/Pigments have

presented a new “styling book” witha wide range of effect pigments. Itwas launched under the name“Color Compendium” and showsaround 26,000 combinations ofspecial-effect colors and glosses.

The binder contains 210 colorcharts, developed using 16 differenteffect pigments of the Iriodin, Col-orstream and Miraval productranges. “What’s particularly specialis that the effect pigments areshown in priming and coating and

also in combination with UVpaints,” reports Ines Kahlert, Mar-keting Manager Europe at Pig-ments/PPS. “In this way, you cansee at a glance how a certain coloris influenced by an effect pigment,depending on the application.”

Kahlert continues that this styl-ing book is unique and can becompared in principle with a Pan-tone or RAL color fan. Pantone andRAL are global standards for paintmanufacturers and graphic design-ers. “The customer benefits areobvious: First of all, customerssave money because proofs andother prototypes can be dispensedwith for the time being. We’re pro-viding a tool that enables them tounderstand even better the widerange of effect pigments. Theythemselves can select the colors todesign their products with more ofa special effect,” explains Kahlert.“With this tool, they can see howtheir selected colors change if theyare refined with effect pigments.”

The styling book is not gearedexclusively to the printing industry,but also to the plastics, coatingsand cosmetics industries. Bothmanufacturers of branded goodsand designers can benefit from itin their daily work. (pae)

Cefic: The European Chemical Industry Council (Cefic) is an organizationconsisting of national associations as well as chemical companies. Cefic isheadquartered in Brussels and represents either directly or indirectly 29,000companies that employ around 2 million people and account for approxi-mately 20% of global chemical production.

EFCG: The EFCG (European Fine Chemicals Group) is a subgroup of Ceficand a forum for manufacturers of fine chemicals such as active ingredientsand fillers used by pharmaceutical manufacturers. The group conductspublic relations and lobbying activities and gives the industry a commonvoice. One of the main concerns of EFCG is to harmonize global competitiveconditions and to create standards for safe and verifiable quality ofproducts.

Excipients: Excipients are inactive substance used as a carrier for the activeingredients of a drug. They include binders, coatings and fillers. They holdthe ingredients in a tablet together, steer the release of the active ingredi-ent, allow for accurate dosage or ensure long-term stability. (os)

Cefic, EFCG and Excipients

The Liquid Crystals divisionrecently received the “2007Frost & Sullivan European

Technology Leadership Award.” Thisdistinguished Merck’s long-standingcommitment to research and devel-opment in the field of innovativeliquid crystal (LC) materials.

The jury founded its decision onthe fact that “Merck has kept pacewith the rapid technological innova-tions in the electronics industrythanks to its increasingly fast devel-opment of advanced liquid crystal

materials.” Merck materials have abroad range of applications, forexample in LCD televisions. Theymeet the requirements of shortswitching times with fast frame ratesfor moving images, broad viewingangles, as well as undistorted colors.Merck aims to constantly improvethe product portfolio and moreeffectively cater to the needs of thehighly dynamic LCD market. For thisreason, recent years have seen a highlevel of investment in research andthe expansion of LC production.

“The Technology LeadershipAward has been granted to a com-pany that has pioneered the devel-opment and introduction of an inno-vative technology into the market.It has either impacted or has thepotential to impact several marketsectors,” said Archana Jayarajah,Senior Research Analyst at Frost &Sullivan. “This award recognizesMerck’s leadership in the successfulpromotion of the technology and itscontinuing impact in technologycommercialization.” (sr)

Award for LCLeading role in the development and marketing of LC technology honored

Alasdair Jelfsheads LC ResearchChanges have been announced inLiquid Crystals Research & Develop-ment as well as Business Develop-ment Chemicals (BDC). Dr. ThomasGeelhaar, previously responsible forboth areas, will now focus on histasks as Chief Technology Officer ofMerck Chemicals and the relatedduties of heading Business Develop-ment Chemicals.

Dr. Alasdair Jelfs, formerlyresponsible for the Liquid Crystalsbusiness in Taiwan, will headResearch & Development LC. DickHsieh succeeds Dr. Jelfs as head ofthe Liquid Crystals business in Tai-wan.

Dr. Udo Heider, previouslyresponsible for LC Business Develop-ment, will head the new OLED busi-ness unit (BU OLED). All research &development, marketing & sales aswell as production activities thatwere formerly managed from Darm-stadt, Frankfurt and Mainz will becombined in this business unit infuture. Combining the activities isto lead faster and more efficientlyto the market success aimed for withthis new technology. The LC Busi-ness Development (LC BD) depart-ment will be dissolved. Its activitieswill either be continued in the newOLED BU or assigned to other depart-ments. (sr/pae)

FROST & SULLIVAN AWARD

INTERVIEW WITH ARNULF HEUBNER

PIGMENTS PERSONNEL NEWS

10 MERCK SERONO pro international February 2008

Rebif: A success story continuesWell-prepared roll-out of the new formulation of the MS drug has begun in Europe – Scandinavian countries take the lead

Merck Serono has started to roll outthe new formulation of Rebif inmany European countries. Strong

impetus for the roll-out was provided by theInternational Sales Meeting in Portugal andwithin the scope of the launch activities atECTRIMS (European Committee for Treat-ment and Research in Multiple Sclerosis).Further launches will take place in the firstquarter of 2008.

Fully dressed for thenew formulation of RebifSpecial care and preparation went into theDanish launch. The launch communicationfocused on efficacy. The pre-launch startedat the beginning of September with a sym-posium where the recently approved productand its branding were introduced to doctorsand the media. This very traditional productlaunch method was complemented by acreative four-step launch mailing to doctorsand nurses. The first three letters containedpictures of shoes, with the caption “Now wemove, Danish research shows us the way.”This was complemented by a T-shirt thatread “Less compromises – get to work” andjeans that promised “The model is wanted– will soon be available.” The fourth lettercombined the three pieces of clothing andsaid “You are now fully dressed for the useof the new formulation of Rebif.”

“We wanted something that impartedthe low-key messages around the drugwithout actually mentioning its name. Thedoctors and MS nurses were well aware ofthe low-key messages and found them verywitty,” said Hjordis Laksafoss, MarketingManager in Denmark.

and the medical community alike. “We are theonly country that kicked off a study for thenew formulation of Rebif in early January,”said Panos Giannopoulos, Manager of theNeurology Business Unit. “The scientific studywill evaluate the tolerability, safety and com-pliance with the new formulation of Rebif, inreal life settings,” he added. Around 100 pa-tients are expected to be recruited. (ra)

Fast-paced launch in FinlandRight after the Nordic launch meeting, theFinnish team proceeded to roll out their thenew formulation of Rebif launch activities. Inorder to position their messages clearly, themarketing experts used a wide range of meth-ods and media. These included meetings withpatients, doctors and nurses, as well as mag-azine ads, call center nurse training, and

mailings containing exhaustive product in-formation. The actual change to the newformulation of Rebif from wholesalers to thepharmacies was far less spectacular and wascompleted in only one day. “We’re monitoringthe feedback from the market closely. Andit’s mostly been positive,” said Erkki Suom-alainen, Marketing Manager Neurology. Theactivities in Greece were focused on patients

With the receipt of regulatory approvalof the new formulation of Rebif fromthe European Commission on August

10, 2007, the most important precondition forthe resource-intensive market launch of themultiple sclerosis drug from Merck Seronohad been met. Approval applies to all 27 EUmember states and additionally to Iceland,Liechtenstein and Norway.

To enhance therapeutic benefit for patients,the development of the new formulation ofRebif focused on higher injection tolerabilityand lower immunogenicity. Study results have

demonstrated that the injection tolerability ofthe new formulation of Rebif is substantiallybetter than that of the previous formulationof Rebif. Local reactions at the site of theinjection are far more seldom with the newformulation. Consequently, the already favor-able risk-benefit profile of Rebif has beenfurther enhanced. “The European approval ofthe new formulation of Rebif is good news forpatients with MS,” said Professor Per SoelbergSorensen from the Danish Multiple SclerosisResearch Center at Copenhagen UniversityHospital. “This new formulation will representan improvement in the therapy of MS patientsbeing treated with Rebif.”

Patients believe in RebifThe best answer to the question as to whatthe new development means is given by peo-ple who live with multiple sclerosis. NathalieLechaud, an MS patient treated with Rebifsince 1994, expressed her hopes as follows:“It will make my life easier, lower side effectsand motivate me to continue treatment andhope for a cure.”

Rebif was launched in Europe in 1998 andin the United States in 2002 and is availablein more than 80 countries. The drug (interferon1-beta) is used to treat relapsing forms ofmultiple sclerosis (MS). The drug has beenproven to reduce disease progression, relapserate as well as the expansion and activity oflesions in the brain as detected by magneticresonance imaging. (os)

Effective and tolerableMS drug offers patients appreciable treatment benefits

The new formulation will further enhance therisk-benefit profile.

Merck Serono and the École Polytech-nique Fédérale de Lausanne (EPFL),known as the Swiss Federal Institute

of Technology in English, are collaboratingclosely in research. In accordance with arecently announced collaboration agreement,Merck Serono and EPFL will be focusingtogether on the areas of neuroscience, oncol-ogy and drug delivery. As part of the agree-ment, there will be three Merck Serono-endowed Chairs, as well as a major researchfund. In addition, the alliance comprises fund-ing for a series of collaborative projectsbetween EPFL groups and Merck Seronoresearch. For example, the use of nanotechno-logy to achieve a better drug uptake will beexplored.

With this alliance Merck Serono is tappingfurther into the excellence of the Lake Genevaregion in life sciences and EPFL’s world-renowned scientific and technical expertise.New perspectives are also resulting for theR&D pipeline and the intellectual propertyportfolio of Merck Serono, for example in thedevelopment of new therapies and medicalapplications.

Working to achievea win-win partnershipFostering a rich scientific dialogue is an-other objective of the alliance. Regular sci-entific presentations and an exchange ofvisiting scientists between EPFL and MerckSerono laboratories are to additionally pro-

mote an innovative spirit. A dedicated col-laboration management organization willsupport this alliance to make sure that it iswell integrated into the research organizationfor optimal mutual benefit. “Our win-wininteraction will create an environment thatenables us to enhance value and move ourprojects forward by combining complemen-tary expertise and resources. This in turnhelps us to bring therapeutic innovations topatients more quickly,” said Dr. BernhardKirschbaum. (ra)

Spotlight on Lake GenevaHigh-caliber partnership with Swiss institute in Lausanne

Around 10,000 people from 107 countrieslive, learn and teach at the campus of theÉcole Polytechnique Fédérale de Lausanne(EPFL). With more than 250 laboratoriesand research groups, EPFL in Lausanneranks among the most innovative and pro-ductive technology institutes in Europe.The EPFL attracts young and establishedscientists from around the world to workin its laboratories. Founded by the Swissfederal government, the EPFL emerged fromthe University of Lausanne in 1969 andbecame a federal institute under its currentname. It is located five kilometers west ofLausanne city center in the town ofEcublens.

A respectedtechnology institute

Enjoying life despitemultiple sclerosis:The new formulation ofthe MS drug Rebif is beinglaunched throughoutEurope.

NEW FORMULATION OF REBIF SCIENTIFIC PARTNERSHIP

MARKET LAUNCH OF THE NEW FORMULATION OF REBIF

11February 2008 pro international MERCK SERONO

New capabilities, arevised design andexciting contents: thenew Merck Seronowebsite at www.merckserono.net isclearly structured,attractive and infor-mative. In addition, thespecialists from theeMedia team haveadded new functionsand information offers.Web user habits wereconsidered from thevery beginning to makethe site as user-friendly as possible.

Add to favoritesIntegrated organization and all therapeutic areas in just one click

News for all web surfers: Merck Seronohas relaunched its global homepage. Thenew website at www.merckserono.net nowfully integrates the Merck corporate brand.A visit to the new website is definitelyworthwhile to obtain more informationabout Merck Serono’s profile, products andactivities.

The new homepage is not only attractiveand informative, it also offers many addi-tional functions. These include enhancedsearch capabilities as well as profiles of theExecutive Management Board (EMB) mem-bers, a media corner, a list of strategic alli-ances, and a special “Fast Facts” section.Colorful graphic icons provide direct linksfrom the home page to specific sections onindividual therapeutic areas, each with anoverview of Merck Serono’s therapeuticapproach in the respective areas along withdisease and product information.

Adopting the corporate brandWith guidance from Corporate Communica-tions, and support from the local IT depart-ment, Gillian Perini, responsible for eMedia,implemented the web solution in responseto a need for comprehensive and sustainablecommunication methods. “Adopting the cor-porate brand on the web was a naturalchoice to support our growing vision. TheMerck Serono website and templates havebeen optimized to increase qualified trafficand search engine ranking. Before the proj-ect was started, web user habits were con-sidered. This facilitates the search for suit-able information,” Perini said.

“One-voice” policy in practiceWorking with nearly 20 different contentcontributors throughout the organization,

Mel Lewis, Communication Resources Man-ager, consolidated the website content. Thetexts were then edited for clarity and tone,embracing the “one-voice” policy.

Following an extensive cross-functionalapproval process, the new website will con-tinue to be regularly updated to reflect thelatest developments and news. In addition,new pages and features will be added includ-

ing the integration of selected Web 2.0functionality. Visitors to the site can easilyaccess specific information, or alternativelygain a general understanding of what MerckSerono has to offer.

During 2008, the eMedia team will beworking closely with both Corporate Com-munications and the CMGs to roll out theMerck Serono web templates. EMD Serono,

Inc., in the United States, is the first CMGto pilot implementation of the new website.

(ra)

For more information regarding this globalprogram, please contact Gillian Perini, eMe-dia, Merck Serono Communications, viae-mail.

Support for theMichael J. Fox FoundationMerck Serono/EMD is making a USD 2 milliondonation to the Michael J. Fox foundation inorder to support a research initiative to drivetreatments for Parkinson’s disease-relatedcognitive dysfunction and mood disorders.

With this donation, Merck Serono/EMDSerono is contributing to the advancementof research in Parkinson’s disease. The Cana-dian-born actor Michael J. Fox, who wasdiagnosed with Parkinson’s disease in 1991,established the foundation that bears hisname in May 2000.

The Michael J. Fox Foundation is dedicatedto finding a cure for Parkinson’s diseasewithin the decade through an aggressivelyfunded research agenda and to ensuring thedevelopment of improved therapies for thoseliving with Parkinson’s today. It collects anddistributes funds for Parkinson’s diseaseresearch. According to the foundation, itraised over USD 95 million in 2007 for thedevelopment of new Parkinson’s treat-ments.

Add-on treatment with safinamidebeing studiedParkinson’s disease remains an area of highunmet medical need, in particular with regardto cognitive dysfunction associated with thedisease. Merck Serono is developing safin-amide as an add-on treatment for patientswith Parkinson’s disease. Safinamide is cur-rently in Phase III clinical trials. (ra)

From Switzerland to South Africa andUruguay, from the United States toIndonesia and Brazil: Participants from

29 Merck Serono sites in 19 countries gath-ered for the first TechOps Quality Congress,which was held in Divonne, France. “Theconference also provided a wonderful oppor-tunity to bring together employees from the

former Merck and Serono organizations,which helped to promote a single corporateculture,” said Bruno Mouton (MS/TO/QM),who organized the event.

Quality leadership is the declared aim ofQM Technical Operations. In 2007, manyimportant steps on this journey were taken.Six quality programs were started, as a

review made clear. But the focus is on thefuture. The quality professionals havelaunched a new quality initiative, whoseaim is to achieve compliance with ICH Q8,Q9 and Q10 in the production operationsof Merck Serono. In 2008, work will beginto adapt company processes to the newstandards. The preconditions are good.Bruno Mouton: “The conference resultedin a global network that is a strong founda-tion for a common understanding ofquality.” (os)

A strong common foundationQuality leadership is the objective – Participants from 19 countries

19 countries, one objective: Participants in the first TechOps Quality Conference in Divonne wantto ensure quality leadership at Merck Serono.

The aim of the “International Conference onHarmonisation of Technical Requirementsfor Registration of Pharmaceuticals forHuman Use” (ICH) is to promote uniformassessment criteria for the product registra-tion in Europe, the United States and Japan.The ICH issues guideline recommendations,which, as the subject of much discussion,apply as the pharmaceutical standards ofthe future. ICH quality criteria deal withPharmaceutical Development (ICH Q8),Quality Risk Management (ICH Q9) andPharmaceutical Quality System (ICH Q10).

ICH – New standards for thepharmaceutical industry

NEW MERCK SERONO WEBSITE

FIRST TECH OPS QUALITY CONFERENCE PARKINSON’S RESEARCH

12 MERCK SERONO pro international February 2008

Playing an open handFirst “EMB lunch” - What Elmar Schnee and 12 employees talked about at lunch

Candid comments and a lively exchangeof ideas were in abundant supply at thefirst “Lunch with the Executive Manage-

ment Board (EMB)”. Twelve Merck SeronoGeneva-based employees had the opportunityto join Elmar Schnee, Executive Board Memberresponsible for Pharmaceuticals and Head ofMerck Serono, for an informal lunch and discus-sion about the latest and most urgent issues aswell as their own perceptions of these topics.

Schnee opened the lunch in the ExecutiveDining Room on the sixth floor of MerckSerono’s Geneva headquarters with a reminderto employees of the two key values to be livedduring the session: courage and transparency.

Over the next two hours the employeesattending the lunch responded with livelydiscussion and interesting insights. The topicsranged from aspiring to “best pharma” andthe best way to get there, to reporting struc-tures in the new organization, to questionsabout specific employee benefits includingsalaries and grading.

“Perception is reality”At the end of the discussion, the employeesagreed on one key take-away for the EMB:“perception is reality”. In other words: Even ifsomething isn’t true, if people think it is true,then it is, and it must be addressed. All theparticipants agreed that the EMB lunch eventswere a good start to addressing employeeperceptions and interacting with employees.

“This lunch accomplished exactly what Ienvisioned: valuable feedback, both positiveand negative, that the EMB can take actionon,” said Schnee. “The participants told meabout several misconceptions that exist in thecompany of which I wasn’t aware. These top-

place and I got the impression that he wascommitted to making it happen.”

The EMB Lunch series will continue through-out 2008 in Geneva and Darmstadt. Schneeand members of the EMB will invite participantseach month. Having a closer look at yourincoming mail could soon pay off, as employ-ees are selected at random to participate. (sm)

Twelve employees were invited to participate in the first lunch with Elmar Schnee. Pictured from left: Alain Lauritzen, Benoît Palms, Carole Ducrest,Damien Regad, Michele Telio, Maria Bonsembiante, Elmar Schnee, Anne Tillé, Rajesh Gupta, Guillaume Pasquier, Jennifer Weygandt, Kinsey Maundrell,Christian Zurbuchen.

ics will be raised at the next EMB meeting sowe can find ways to ensure that perceptionmatches reality.”

At the end of the session, Schnee encour-aged the participants to continue to ask ques-tions and live the values, mainly courage andtransparency, outside of the lunch session.“It’s nice to see that the EMB is providing

employees with the opportunity to discusstheir views,” said Michele Telio, who partici-pated as Head of Training and Developmentin HR at Merck Serono. “I greatly appreciatedthe openness, honesty and sincerity of ElmarSchnee when discussing and addressing ourissues and concerns. He was realistic when hesaid it will take time for everything to be in

Dr. Jim Golby, HR Manager at Merck SeronoUK, has been awarded the prestigiousChartered Institute of Personnel Develop-

ment (CIPD) Management Research Reportprize. He successfully compared how well twodifferent recruitment profiling tools can predict“real life” job performance. His study was partof a work-based project that he performed whilepursuing a Fellowship of the Chartered Institute

of Personnel Development. Golby received hisaward from Mike Kelly, the CIPD Vice Presi-dent for membership and education at anaward ceremony held at the CIPD’s annualconference in Harrogate, England. The win-ning entry stood out among some very strongentries in this year’s competition.

Golby clearly succeeded in combining asolid academic foundation with a practical

A job well doneHow job performance can be predicted – Dr. Jim Golby wins prize

Dr. Jim Golby (left)was recognized forhis work on person-nel recruitment.CIPD Vice PresidentMike Kelly congra-tulates him.

Market datafrom the sourceSecuring competitive advantage, capturingnew markets, identifying consumer behaviorand performing competitive research are es-sential preconditions to successfully marketand launch pharmaceuticals. IMS Health, thelargest supplier of data on the global pharma-ceutical industry, provides Merck and indi-vidual Group companies with extensive, spe-cific and reliable data.

In close cooperation with Merck Serono,Corporate Purchasing (CP) has now enteredinto a central, European-wide agreement thatapplies until 2010. “We not only significantlyimproved the terms, but also negotiated afixed-price, three-year agreement for theCMGs,” explained Chris Godfrey, MerckSerono Market Research. “The new agreementis also an important step in harmonizing theindividual Merck companies and promotes theMerck Serono integration.” In addition, thequality of the market data provided to theCMGs in 27 European countries will be higherand the breadth and depth greater than in thepast.

In order to establish IMS as an importantMerck business partner, a global agreementhas also been signed. As a result, IMS is aso-called preferred supplier and as an advisorwill be invited to bid for a wide range ofconsulting projects relating to the develop-ment and marketing of drugs, from the eval-uation of therapeutic areas up to marketlaunch. Moreover, CP is already working onanother international agreement that willinclude companies outside of Europe. (bb)

and innovative piece of work. “To be selectedas the 2007 prize winner by the CIPD’srespected panel of judges really is a majoraccolade for me,” Golby said, pleased to havewon this award from such an important pro-fessional body. “My project was an interestingpiece of research particularly as recruitmentis so important to the future success of ourbusiness.”

INFORMATION EXCHANGE

PERSONNEL RECRUITMENT COMPETITIVE ADVANTAGE

13February 2008 pro international MERCK SERONO

Finding the right balanceThe Merck Serono balanced scorecard reconciles financial goals and people perspectives

Adoctor must balance the benefits,costs and risks of prescribing a drugto a patient. A mother has to balance

her needs with those of her children, herhusband, friends, and employer. In fact,we all must achieve some kind of balanceto be successful in almost any aspect of ourlives.

What applies to people also applies toorganizations. They must strike the rightbalance between many different factors toachieve its vision and strategic aims. ForMerck Serono this means:• Investing in new products to ensure future

growth while maximizing the financialperformance and value of current prod-ucts.

• Building and maintaining a balanced pipe-line of NCEs and NBEs by complementinginternal R&D programs with in-licenseddevelopment candidates.

• Improving the speed and efficiency as wellas the quality and reliability of all businessdecisions and processes.

• Building a world-class culture by retain-ing and attracting the best people, skillsand talent required to meet our businessneeds.To help achieve and maintain the right

balance, Merck Serono is implementing animportant strategic tool in 2008: The Bal-anced Score Card (BSC).

Not just a financial exerciseThe Balanced Score Card (BSC) was devel-oped in 1992 to measure if a company ismeeting its objectives in terms of vision and

strategy. Unlike other measurement tools,the BSC focuses not only on the ultimatefinancial outcomes of an organization, butalso on many other non-financial factorsthat help drive success. Many well-knowncompanies use the BSC to translate strategyinto action, such as Dupont, Johnson &Johnson and Siemens.

When properly implemented, the BSChelps to provide a more comprehensive viewof a business, which in turn helps that busi-ness focus on its long-term success. As itsname implies, the Balanced Score Card bal-ances financial objectives with customer,process and employee perspectives.

Some employees from the former Seronomay be familiar with the BSC, as it was usedby that organization for the last severalyears. Importantly, in Merck Serono, thedevelopment of the 2008 BSC has taken intoaccount past experience to arrive at a toolthat should be truly effective for driving thebusiness.

The BSC also underscoresthe Mission Statement“Our mission statement states: ‘We at Merckdo what we say.’ The Balanced Score Cardwill help ensure that at Merck Serono, wetruly live this mission,” emphasizes ElmarSchnee, Executive Board Member and Headof Merck Serono. He continues: “Becausethe BSC will measure key aspects of ourorganization across different factors, thereis an opportunity for every employee to havea clear and tangible impact on the futuresuccess of our business.”

Elements of the 2008 Merck Serono BSCwill focus on many aspects of the business.Some examples:• Classic financial measures, such as sales,

growth and profitability• Development of the pipeline and product

portfolio• Process improvements across the busi-

ness• Employee development and engagement

“The BSC will truly help everyone under-stand what makes the business ‘tick’ andensure they align their own individual goalsto those of the division. In this way, we’llall be moving in the same direction,” saysKai Martens, Head of Strategy and Manage-ment Processes at Merck Serono. “Everyonewill receive details of the Balanced Score

Card that is relevant to them from their localmanagement in the coming weeks. This willgive each employee the opportunity to iden-tify those actions they should take to helpachieve the BSC for 2008.”

Transparency andachievementThe BSC and its approach to the businessare in line with the Merck values. By for-mulating goals and reporting on progress,a culture of transparency will emerge, whilealso driving and measuring achievement.Merck Serono’s BSC approach helps everyemployee understand what is vital for thebusiness, and how his/her work — individu-ally and collaboratively — is contributingdirectly to the future success of the com-pany. (sm)

Joining forcesin cancer treatmentMerck Serono and Idea Pharmaceuticals of theUnited States have entered into a worldwidelicensing and collaboration agreement for theresearch, development and commercializationof Idera’s Toll-like Receptor 9 (TLR9) agonistsfor the treatment of cancer. Toll-like Receptors(TLRs) function in human immune cells as thesensors of pathogens. They recognize differentmicrobial products present in pathogens suchas bacteria, viruses and parasites, and mount anappropriate immune response against the foreigninvaders. “We believe that TLR9 agonists repre-sent a novel mechanism of action with greatpotential and we look forward to advancing theirdevelopment for various oncology indications,”said Vincent Aurentz, Head of Portfolio Manage-ment and Business Development for the MerckSerono division. Under the terms of the agree-ment, Merck has agreed to pay an up-front li-cense fee of $40 million (about EUR 28 million)to Idera.

In the past 15 years, the Merck ThyroMo-bil has made stops on five continents andin more than 35 countries. The mobile

examination vehicle, with its small treat-ment room and state-of-the-art equipmentsuch as ultrasound equipment, has allowednearly 40,000 children to be screened foriodine deficiency and enlarged thyroids.“Our mobility is unique. We go directly tothe children wherever they are, even in themost remote areas,” explains Dr. UlrikeHostalek, MS/DEV/MARH. The first Thyro-

mobil started its maiden journey in 1993,with the objective of informing peopleabout the consequences of iodine defi-ciency.

Iodine deficiency is nearly an epidemicin many countries, since too little of thisessential mineral is obtained through thefood chain. The consequences can be severe,especially during pregnancy and for new-borns. They range from an enlarged thyroidto physical and mental disorders. “In closecooperation with the International Councilfor the Control of Iodine Deficiency Disor-ders (ICCIDD) and the World Health Orga-nization (WHO), we’ve helped create greater

awareness of iodine deficiency,” says Hos-talek.

Thyromobils in use worldwideMerck currently has four special vehicles inservice around the globe. Such a Thyromobilcosts approx. EUR 80,000. They travelthroughout an area anywhere from two weeksto two years. A local physician experiencedin ultrasound diagnosis accompanies the op-eration, together with an assistant and adriver. In the meantime, one of the Thyro-mobils has been donated to the WHO forAfrica, and the others are being used in NorthAmerica, Asia and Europe. (bb)

In use around the worldPerforming thyroid screening locally – Info on iodine deficiency

An ultrasound device is usedto measure the sizeof the thyroid. In addition,a urine sample is taken.This makes it possible todetermine in epidemiologi-cal studies whether iodinedeficiency exists in a regionor a country (large photo).Four Thyromobil vehicles(small photo) are on theroad worldwide to informthe public about iodinedeficiency, and especiallyto screen children for thiscondition. Photos: Speith

A few key principles of the Merck Serono BSC:• It has been developed by cross-functional and cross-regional teams to ensure balance

across every measure.

• It has been developed with a long-term picture in mind. So, although Merck Seronowill focus on meeting the goals of the 2008 BSC, the BSC also will measure how thedivision is developing in the future.

• The BSC is not simply a financial exercise. It looks at different metrics from a holistic view.Aspects such as quality or customer satisfaction count just as much as people do.

• The BSC of the Merck Serono division is supported by separate scorecards for thedivision’s main functions, regions, countries and sites. This will result in aligned andconsistent metrics.

Merck Serono in FocusThe next “Merck Serono in Focus” event willtake place on Wednesday, March 5, from 2:30to 4 p.m. (CET). Information will be pro-vided at the event on the latest developmentsat Merck Serono and employees will havethe opportunity to ask questions on certaintopics. More information will be provided indue time on the MerckNet.

BALANCED SCORECARD AT MERCK SERONO

15 YEARS OF THYROMOBILNEW MODE OF ACTION

INFORMATION EVENT

14 INSIDE LOOK pro international February 2008

Editorial team:

Wolfgang Westphal-Petersen(wp/verantwortlich), Tel. -5417

Barbara Bennier (bb), Tel. –2579

Birgitta Danner (bd), Tel. –2164

Meinhard Lerch (ml), Tel. –2624

Björn Paeschke (pae), Tel. –8442

Oliver Schmidtchen (os), Tel. –8187

The areas of responsibility of the individualeditorial team members can be found onthe MerckNet at pro.merck.de

Contributors to this issue: Rodica Antonescu,(ra), Frank Buchholz (fb), Stacey Minton (sm),Jennifer O’Lear (jol) and Sandra Ramge (sr)

English translation: Colette Roell andTherese RoseLayout: Brigitte Schneider, CC/C,typowerkstatt, DarmstadtTypesetting and printing:ColorDruck, Leimen

“pro” is accessible to every Merck Groupemployee. “pro” and its contents may not bepassed on to others or reprinted in whole orin part without the editors’ written permis-sion; a specimen copy is requested.

The next issue of pro will be publishedin March 2008.

Publisher: Merck KGaA, Corporate Communications | 64271 Darmstadt | phone +49(0)6151/72-0 | fax +49(0)6151/72-5577 | e-mail address: pro@merck.de

Coordination:Frauke Kirchhoff-Grohnert(ki), Tel. -7328

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