Merck Serono opens Beijing R&D centre

Merck KgAa's headquarters in Germany

China's allure for pharma companies continues unabated with Merck Serono's opening of a research and development centre in Beijing.

The company plans to invest more than 150 million euros and create 200 new jobs in the city over the next four years.

Much of the new facility's activity will focus on biomarker research including pharmacogenomics and bioanalytics.

"The creation of the China R&D centre marks a new milestone in Merck Serono's commitment to China, where there is a rising demand for more healthcare options," said Elmar Schnee, Merck's executive board member with responsibility for pharma.

China was initially viewed as a favourable base for pharma production but is now increasingly used for clinical and other R&D functions. For example, earlier this year Bayer Schering Pharma announced it was to build a 100 million-euro R&D centre in Beijing.

Beijing will be the fourth major R&D base for Merck Serono, after Germany, Switzerland and the US.

Schnee added that Merck is committed to investment in addressing China's unmet public health needs.

The manufacturer already has some research collaborations in China and says it "plans to further develop its collaboration network".

This will include more links with research groups in China as well as partnerships with local academic institutions and companies.

Bernhard Kirschbaum, Merck Serono's executive vice president for R&D, said: "China is a country with talented scientists and high-quality research.

"We will recruit more R&D talent in China and build a world-class organisation in China that will extend our global R&D expertise and capabilities."

In addition to running clinical trials, Merck's Beijing team will lead drug development for China and other Asian countries.

Merck Serono China already employs 1,000 people across the country and offers many of Merck's leading brands, including cancer drug Erbitux, multiple sclerosis brand Rebif and infertility treatment Gonal-f.

A 2008 report by the Ewing Marion Kauffman Foundation reinforced China's place as a global hub for pharma R&D.

It said that, in 2006, 8.4% of all global pharma patent applications named one or more inventors from China - a four-fold increase on 1995.