Horn: Nantong proves China is Merck's innovation powerhouse

File photo: Merck Life Science Center celebrates the operation of its production base in Nantong in 2024. [Photo/Nantong Daily]

Marc Horn, the former president of Merck China, lauded China in a podcast, emphasizing its role not only as a market but as a powerhouse of innovation for Merck Group.

In the podcast titled Made in China, Horn detailed the strategic positioning of the 350-year-old German company in China, focusing on Merck's investments in Nantong, Jiangsu province, as a pivotal example of its localization strategy.

Founded in 1668, Merck Group is one of the world's oldest chemical and pharmaceutical companies, with business areas spanning life sciences, healthcare and electronic technology.

During Merck's strategic transformation in the second decade of the 21st century, the company chose Nantong as its production base, concentrating on products for diabetes, thyroid disorders, cardiovascular diseases and colorectal cancer.

Horn consistently praised the Nantong Economic and Technological Development Area for its rapid, robust and genuine efforts in attracting major projects. This professional and efficient administrative service was crucial in Merck's decision to choose Nantong over many other competing cities.

In 2014, Merck established an integrated pharmaceutical base in Nantong, making it one of the company's largest production facilities globally. This deep mutual trust led Merck to make five consecutive investments in NETDA over the following decade, totaling about 3.3 billion yuan ($477.40 million) and representing half of Merck's total investment in China.

Horn described Merck's strategic transformation in China as a shift "from importer to participant in local innovation". To achieve this, Merck has promoted the development of a comprehensive localization system.

He said that localization in research and development involves establishing research teams in China to conduct original research tailored to the Chinese market. "These innovations not only serve China but can also have a global impact," he said.

Supply chain localization involves creating a complete chain from raw materials to production within China. Ecological cooperation is achieved through investments, partnerships and incubation, building an innovation ecosystem with local enterprises and research institutions, according to Horn.

He said that Merck's commitment to the Chinese market is a "long-term investment", not driven by short-term performance. "As a company with a history spanning over 350 years, we view the market in terms of decades, even centuries," he said.