Merck KGaA, headquartered in Darmstadt, Germany, is a global science and technology powerhouse that balances a traditional heritage with cutting-edge innovation. The company operates through three primary segments: Life Science, which provides laboratory equipment, chemical reagents, and bioprocessing tools for the pharmaceutical and academic sectors; Healthcare, which focuses on developing ...Merck KGaA, headquartered in Darmstadt, Germany, is a global science and technology powerhouse that balances a traditional heritage with cutting-edge innovation. The company operates through three primary segments: Life Science, which provides laboratory equipment, chemical reagents, and bioprocessing tools for the pharmaceutical and academic sectors; Healthcare, which focuses on developing specialized treatments in oncology, neurology, immunology, and fertility; and Electronics, a key supplier of advanced materials for the semiconductor and display industries.
From a business perspective, Merck KGaA differentiates itself by its strategic diversification, which provides resilience against market volatility in specific sectors. Its financial strategy emphasizes sustainable growth, supported by a healthy balance sheet and consistent cash flow generation, as reflected in its current valuation and stable debt-to-equity ratios. The company invests heavily in Research and Development—typically around 12% of its revenue—to maintain its competitive edge in complex technological landscapes like high-performance semiconductor materials and personalized medicine.
Operational management is led by CEO Belen Garijo Lopez, who has focused on streamlining the portfolio to prioritize high-margin, high-growth areas. The company maintains a global footprint with approximately 62,461 employees across 65+ countries. Their BOM (Bill of Materials) and cost structures are heavily tied to high-tech manufacturing and stringent quality control standards, particularly in the production of biopharmaceuticals and display components.
Looking toward the future, the 'Merck' brand represents a commitment to science as a 'force for good.' The company’s strategic goals include digital transformation and sustainability, aiming to reduce its environmental footprint while expanding its market share in the booming biotechnology and digital materials sectors. Despite competitive pressure from other global pharmaceutical giants, Merck’s unique structure as a family-controlled entity (via E. Merck KG) allows for long-term strategic decision-making that often favors steady, multi-decade growth over short-term quarterly shifts. Their collaboration-heavy approach—involving licensing agreements and strategic partnerships with entities like Debiopharm and Jiangsu Hengrui—highlights a proactive effort to bolster their pipeline and stay ahead of the curve in life-saving medical discoveries.
Operator: Dear ladies and gentlemen, welcome to the Merck Investor and Analyst Conference Call on Second Quarter 2026. [Operator Instructions] I am now handing over to Florian Schraeder, Head of Investor Relations, who will lead you through this conference. Please go ahead, sir.
Florian Schraeder: Thank you very much, Heidi. Good afternoon, good morning, everyone, and welcome to our Q2 '26 results call. Thank you for joining us today. My name is Florian Schraeder, and I'm the Head of Investor Relations at Merck. In our Q2 call today, Kai Beckmann, Group CEO, will begin with sharing an update on first steps since we announced our new strategic direction in May. Kai will then provide a brief overview of our business performance and key developments in the second quarter as part of his executive summary. Helene von Roeder, Group CFO, will guide you through the detailed financial overview. Before we move into the Q&A session, where we will be joined by Jean-Charles Wirth, CEO of Life Science; Danny Bar-Zohar, CEO of Healthcare; and Benjamin Hein, CEO of Electronics, Kai will share our updated outlook and guidance with you. With that, I'm pleased to hand it over to Kai to kick us off.
Kai Beckmann: Thank you, Florian, and good afternoon, good morning, and thanks to you all for joining us today. So before we get to the numbers, let me first give you a sense of where we stand strategically and highlight the milestones we have achieved in recent months since announcing our strategic direction in May. Each of these milestones addresses the evolving expectations of our customers and patients in an increasingly complex world. Geopolitical tensions, shifting trade dynamics, active policy debate and accelerating AI-driven technology rates are all shaping the environment in which we operate. In this context, only a clear plan and disciplined execution will move us closer to the sustainable profitable growth we are building for our company. Allow me to share a few early proof points. Let me start with the signing of a definitive agreement to acquire Bio-Techne Corporation on June 25. Subject to regulatory approval and closing, Bio-Techne's complementary portfolio of high-quality reagents, analytical instruments and diagnostic systems for precision medicine is expected to be immediately accretive to sales growth and margins. In parallel, we continue to invest in the capacity required to scale our manufacturing and R&D in electronics, delivering precise, reliable and scalable solutions across the semiconductor value chain. In June, we opened a new metrology and inspection site near Grenoble, France. This EUR 20 million investment will expand our capacity for M&I tools in a key semiconductor hub. Our rare diseases portfolio continues to show strong momentum, and our pipeline has also advanced. Xevinapant and GOMEKLI both delivered quarter-over-quarter and year-over-year growth. In addition, pimicotinib generated first sales in China, and preparations for a U.S. …
