A Tale of Two Mercks: A Confusion Over a Shared Brand

Andrew Ward, Pharmaceuticals Corrispondente – 3 Maggio 2015 – Financial Times

Target of Merck of Germany is to increase investment in its brand to defend the company's rights to the 347th anniversary of the name it shares with Merck of the United States.

Karl-Ludwig Kley, chief executive, said he wants the German group to be more assertive in its brand ownership worldwide outside of North America.

L’esistenza di due grandi marchi farmaceutici con lo stesso nome è diventato un crescendo irritante per entrambe le aziende e internet ha minato un patto decennale con il quale la proprietà del marchio è stata divisa lungo linee geografiche.

Mr Kley told the Financial Times this was causing confusion among doctors and patients.

“Il fatto è che per molti decenni abbiamo sottoinvestito nel nostro marchio”, ha detto. “Abbiamo bisogno di rendere le persone più consapevoli del fatto ci sono due Mercks.”

Entrambi erano originariamente parte della stessa società fino a quando l’azienda americana è stata confiscata dal governo degli Stati Uniti durante la prima guerra mondiale.

They have since become competitors, with the German Merck own the worldwide rights to the name, except in the United States and Canada, where it is known as EMD. US Merck is known as MSD in the rest of the world.

Internet ha reso più difficile la gestione del presente accordo, con la società statunitense sempre più indicata come Merck in tutto il mondo. I media spesso utilizzano i titoli ufficiali delle società – Merck & Co degli Stati Uniti e Merck KGaA di Germania – per distinguerli.

The problem was highlighted last year when dei protesters mistakenly showed up outside the London offices of German Merck to protest alleged unethical behavior by US Merck in Africa.

Mr Kley ha citato i casi di dati degli studi clinici in corso mescolati e ha riconosciuto che la situazione “non è stata soddisfacente per nessuno”.

With 2014 sales of $ 42.2 billion, Merck is three times larger in the US than its counterpart. However, Mr Kley clarified that the world's oldest pharmaceutical company has no plans to give up a name that traces back to its 17th-century founder, Friedrich Jacob Merck, whose descendants still control the German company.

“Dal nostro punto di vista hanno una storia piuttosto breve, ma una storia ricca di successi e di orgoglio”, ha detto, riferendosi a Merck Stati Uniti. “Sono stati il ​​nostro bambino per così dire. Le due società sono cordiali. Stiamo cercando di lavorare all’estero, ma non è facile “.

Mentre negli Stati Uniti Merck possiede il marchio nel più grande mercato di farmaci del mondo, Mr Kley ha sottolineato che la tedesco Merck ha una più rapida crescita in mercati come la Cina e il Brasile. “Sono Merck di due paesi, presenti in 150.”

Negli Stati Uniti Merck ha detto che era impegnata a “risolvere i problemi attraverso la comunicazione e la cooperazione, senza la necessità di ricorrere al contenzioso”.

Karl-Ludwig Kley, Chief Executive Officer and board of Merck KGaA, aged 63, received total compensation of €8,892,000 in 2014

Kenneth C. Frazier, Chairman, Chief Executive Officer and President of Merck & Co. Inc, age 59, received total compensation of $ 25,029,370 in 2014

Related news: Peter Merck has died at the age of 87

Ed.: Merck KGaA is a chemical and pharmaceutical company headquartered in Germany. Founded in 1668 in Darmstadt, it is one of the oldest chemical-pharmaceutical companies still operating today. Private until 1995, Merck KGaA is now a public company, although the Merck family still controls a large portion of the company's shares.

Following the First World War, Merck lost all assets located in foreign states, including the subsidiary Merck & Co. on US territory. Merck & Co., called Merck Sharp and Dohme (or MSD) outside the United States and Canada, is now an independent company.

Merck KGaA operates primarily in Europe. Since Merck & Co. has the rights to use the Merck name in North America, Merck KGaA operates in this region under the name EMD, short for Emanuel Merck, Darmstadt.

Merck is a limited partnership limited by shares (KGaA). At least one of the partners has unlimited liability for the company's creditors (general partner). The other partners (limited partners) are involved in the share capital divided into shares, without being personally liable. It is therefore a hybrid between a public limited company and a limited partnership with a focus on corporate law.

In Merck KGaA the Merck family with E. Merck KG maintains the Kommanditaktionäre with approximately 30 percent of the total capital and is complementary to the remaining 70 percent.

E. Merck KG's capital is predominantly held by silent partners who are members of the extended Merck family. The Merck family has 217 members (as of October 2009). Of these, 130 form the assembly, which in turn determines the family council.