Short article detailing the differences between Merck KGaA and Merck Sharp & Dohme (MSD).

1. IMS Observer – Issue 7
IMS HEALTH ASIA PTE LTD 8 Cross Street #21- 01/02/03 Singapore 048424 • E-mail: APACSocialMedia@imshealth.com • Website: www.imshealth.com
○C 2015 IMS Health Incorporated and its affiliates. All rights reserved. Trademarks are registered in the United States and in various other countries
Merck’s Identity Crisis
Family Feud or Misunderstanding?
An online dispute
On 11 October 2011, Merck KGaA employees, based in Darmstadt, Germany discovered that unfamiliar content
on their company’s Facebook page (www.facebook.com/merck). More shockingly however, was that they had lost
administrative rights for this page. Instead, Merck & Co., headquartered in the United States, assumed
possession of the aforementioned URL, which was a blatant infringement of Merck KGaA.
Despite Facebook’s profuse efforts in publicly apologizing for its wrongdoing over the corporate URL ownership,
Merck KGaA sought to resolve this via litigation in the New York Supreme Court. This lawsuit was brought on not
because of the similarity in the corporate name, but was likely sparked by the (mis)identification of the “Merck”
name.
For the uninitiated, there are three variations of the “Merck” company brand, which inevitably leads people to
confusion. Although Merck KGaA and Merck & Co. originated from the same family, the two companies parted
ways and continued to retain the Merck brand name. The history of the two companies dates back to 17
th
century
Europe, where the pharmaceutical industry laid the foundation for virtually all multinational companies (MNCs)
today.
History of Merck
The origin of Merck KGaA can be traced back to a pharmacy store established in Darmstadt, Germany by a
German pharmacist in 1668. Locals referred to it as “Engel-Apotheke (Angel Pharmacy)”. Not long after, an
apothecary, Friedrich Jacob Merck, bought over Angel Pharmacy. Under his stewardship, the store ran
successfully for over 100 years. In 1816, Emanuel Merck inherited the pharmacy business and changed the
business focus from retail to production of chemical and pharmaceutical raw materials and other chemical
products. A major turning point for Merck was in 1891, when George Merck, son of Emanuel Merck, set up a
branch in the US. The primary aim of the business was primarily importing pharmaceutical products manufactured
in Germany and selling it to pharmacists in the US. With the growing business, in 1902, George formally
established Merck & Co. in New Jersey, which began to gradually produce pharmaceutical products to replace the
pure import business.
Same roots, different paths
The separation of Merck into Merck KGaA and Merck & Co. occurred as a result of World War I. In 1917, the then
German-owned Merck & Co. was expropriated by the US government in accordance with war-time policy. This
was the cornerstone for the divergence of Merck KGaA and Merck & Co. With German commerce curtailed during
the war, Merck & Co. still existed, but its ties and connections to its parent company, Merck KGaA, was severed.
Thereafter, Merck & Co. has maintained a firm presence in the US.
Under the leadership of George, Merck & Co. survived the two wars and expanded its business overseas. In 1953,
Merck & Co. merged with Sharp & Dohme, thus creating Merck Sharp & Dohme (MSD). This newly formed
company thrived in the post-war economy.
Across the Atlantic, Merck KGaA benefited from the German “economic miracle”: a post-war time period
characterized by a low inflation rate and high industrial growth. The economic growth of West Germany enabled
Merck KGaA to acquire some of its branches previously lost overseas. Merck KGaA was eventually privatized
under the strain of corporate governance, and only 25% of stocks were distributed to the public. Merck KGaA has
been managed by the Merck family for 13 generations, with more than 200 family members. However, because of

2. IMS Observer – Issue 7
IMS HEALTH ASIA PTE LTD 8 Cross Street #21- 01/02/03 Singapore 048424 • E-mail: APACSocialMedia@imshealth.com • Website: www.imshealth.com
○C 2015 IMS Health Incorporated and its affiliates. All rights reserved. Trademarks are registered in the United States and in various other countries
relationship between Merck KGaA and Merck & Co., the Germany-based company has never thrived in the North
American region.
After much fighting within the Merck family with regards to the “Merck” brand name, the two companies (Merck
KGaA and Merck & Co.) decided to redistribute the rights. The German-based company would be known as
Merck KGaA while the US-based Merck would be known as Merck & Co. in US and Canada. Merck KGaA would
be known as Emanuel Merck Darmstadt (EMD) in North America while Merck & Co. would be known as MSD
outside of North America.
Different Entities & Their Logos
Logo of Germany-based Merck KGaA Logo of Merck KGaA in North America; known as EMD
(Emanuel Merck Darmstadt)
Logo of Merck & Co. in North America
Logo of Merck & Co. outside of North America; known
as MSD (Merck Sharpe & Dohme)