Merck KGaA, the German pharmaceutical and chemical company, is setting up a biopharmaceutical production plant at its headquarters in Darmstadt, Germany.

The plant will be used to manufacture the latest generation of biological active ingredients for the treatment of cancer. At an estimated cost of approximately EUR 190 million, this would be the second-largest single investment ever made by the company. Approximately 190 new positions for highly qualified candidates would be created. Production is expected to commence in 2010.

Apart from Darmstadt, other sites in Germany and abroad were considered. "We decided in favour of Darmstadt mainly for strategic reasons. This biopharmaceutical production plant represents a very important technology for Merck and will therefore be constructed at our headquarters," said Dr. Michael Roemer, chairman of the executive board. The excellent infrastructure, highly qualified workforce, internationally acclaimed academic environment and central geographic location were also decisive factors in favour of Darmstadt, he added.

"The decision to start planning a new biopharmaceutical production plant here in Darmstadt is a clear indicator of the competitiveness and the competence of the people who work in Darmstadt. The Works Council therefore welcomes this decision, which we vigorously worked towards in recent months," said Merck Works Council Chairman Flavio Battisti.

Initially, the new plant would mainly produce the monoclonal antibody Erbitux (cetuximab) for the treatment of colorectal and head and neck cancer. Merck acquired the rights to develop and market Erbitux outside the United States and Canada from ImClone Systems, Inc. (New York). In Japan, Merck shares co-marketing rights with ImClone Systems. Merck first launched Erbitux in 2003 and now markets it in 52 countries. Erbitux is currently manufactured for Merck by Boehringer Ingelheim and ImClone Systems. The oncology drug is Merck's single top-selling pharmaceutical product, generating a 56 per cent year-on-year increase in sales to EUR 81 million in the second quarter of 2006.