Merck's Chemical Test

Merck KGaA has put its own spin on the trend among mid-size European companies to choose between their prescription drugs and chemical businesses. Last week the company confirmed its commitment to a dual business strategy by unveiling plans to buy U.S. laboratory and biotech supply company Millipore Corp. for $7.2 billion.

By enhancing its performance chemicals business, Merck hopes to catalyze growth. Last month, the pharma said it expects overall group growth this year of 3-7%. Revenues from Merck Serono S.A., which account for 70% of the company's drugs business, are predicted to grow only 2-5% in 2010...