MSD’s 30% Health Innovation Investment
MSD Animal Health Invests Heavily in R&D, Eyes Growth in Mexico
Table of Contents
MEXICO CITY – Merck Sharp & Dohme (MSD) is channeling a meaningful portion of its revenue into research and advancement, positioning itself alongside tech giants in its commitment to innovation. The biopharmaceutical company dedicates between 25% and 30% of its annual $60 billion income to R&D,according to Leonardo Burcius,general director of MSD Animal Health in Mexico.
Burcius noted that the company’s global R&D expenditure reached $30.5 billion in 2023, representing half of its global income. This investment fuels a continuous pipeline of new products and solutions, he said.
while Apple invested over $31 billion in research and development in 2024, and Google reportedly invested $75 billion in artificial intelligence, MSD’s commitment underscores the growing importance of innovation in the animal health sector.
“We have a launching agenda all the time because there are always problems and new things that we are launching,” Burcius said.
MSD Animal Health has recently focused on integrating technology into its offerings. “In recent years we have invested in technological solutions (which offer data and algorithms) to support the production chain and animal welfare,” burcius added.
New Products and technologies on the Horizon
MSD Animal Health Mexico plans to launch several new products in 2025 aimed at improving animal well-being. These include a new vaccine for pig farming and an antiparasitic treatment for pets providing year-long protection against fleas and ticks.
The company is also developing technologies such as smart necklaces for health monitoring and livestock reproduction, functioning similarly to smartwatches for animals.
MSD is known for human health products such as Keytruda, a cancer treatment. In animal health, the company operates across livestock, poultry, pigs, pets, and aquaculture divisions.
Its product portfolio includes recombinant vaccines for beekeeping, needle-free intradermal vaccinators for pigs, and various pet solutions, including flea and tick treatments.
Mexico: A Key Market in Latin America
Burcius identified Mexico as the second most important market for MSD animal Health in Latin america, trailing only Brazil. It also ranks among the top ten markets globally.
He explained that Mexico’s significance stems from its significant protein production and consumption,placing it among the top 10-15 countries in pork,poultry,egg,and milk production.
While the company does not have a clinical research center in Mexico,it imports globally developed products to benefit livestock,pig farming,poultry,aquaculture,and pet producers.
Livestock represents MSD’s primary business in Mexico, followed by poultry and pig farming. The pet segment is experiencing growth, driven by the increasing trend of pets being considered family members.
Aquaculture, while currently smaller, holds significant potential due to the adoption of technologies like tilapia vaccines, according to Burcius.
Opportunities Amidst Trade Pressures
Despite current commercial pressures related to tariff rates, Burcius expressed optimism about opportunities in Mexico. “I do not go for crisis or uncertainty because in a sector like this we always talk about the possibility and there are still a lot. There are two things that are essential for life: health and food (it is indeed where we focus),” he said.
He highlighted the resilience of the food production industry during the COVID-19 pandemic. “While people need to eat, we continue working with producers,” he said.
With the world population projected to reach 10 billion by 2050, the demand for food is expected to increase significantly.
This necessitates further technological advancements and solutions to support meat, milk, and egg production, ensuring safer and more accessible food for all, according to Burcius.
MSD Animal Health in Mexico: A Q&A
Q: What is MSD Animal Health’s focus in Mexico?
A: MSD Animal Health is heavily investing in research and development (R&D) and aiming for growth in Mexico. The company is directing a significant portion of its revenue towards innovation, similar to tech giants. According to Leonardo Burcius, general director of MSD Animal Health in Mexico, the biopharmaceutical company dedicates between 25% and 30% of its annual $60 billion income to R&D.
Q: How much does MSD invest in R&D globally?
A: Globally, MSD’s R&D expenditure reached $30.5 billion in 2023, representing half of its global income. This investment fuels a continuous pipeline of new products and solutions.
Q: Were does Mexico stand for MSD Animal Health?
A: Mexico is the second most significant market for MSD Animal Health in Latin america, trailing only Brazil. It also ranks among the top ten markets globally.
Q: What makes Mexico a key market for MSD Animal Health?
A: Mexico’s meaning stems from its significant protein production and consumption. It is among the top 10-15 countries in pork, poultry, egg, and milk production.
Q: What new products and technologies is MSD Animal Health launching?
A: MSD Animal Health Mexico plans to launch several new products in 2025 aimed at improving animal well-being.These include a new vaccine for pig farming and an antiparasitic treatment for pets offering year-long protection against fleas and ticks.The company is also developing technologies such as smart necklaces for health monitoring and livestock reproduction, functioning similarly to smartwatches for animals.
Q: What are the main areas of MSD’s business in mexico?
A: Livestock represents MSD’s primary business in Mexico, followed by poultry and pig farming. The pet segment is experiencing growth, driven by the increasing trend of pets being considered family members. Aquaculture, while currently smaller, holds significant potential due to technological advancements like tilapia vaccines.
Q: How does MSD’s R&D investment compare to that of other major companies?
A: While apple invested over $31 billion in research and development in 2024, and Google reportedly invested $75 billion in artificial intelligence, MSD’s commitment underscores the growing importance of innovation in the animal health sector.
Q: What is MSD’s product portfolio?
A: MSD’s product portfolio includes recombinant vaccines for beekeeping, needle-free intradermal vaccinators for pigs, and various pet solutions, including flea and tick treatments. The company is also known for human health products such as Keytruda,a cancer treatment. in animal health, the company operates across livestock, poultry, pigs, pets, and aquaculture divisions.
Q: What opportunities does MSD Animal Health see in Mexico despite trade pressures?
A: Despite current commercial pressures related to tariff rates, MSD Animal Health is optimistic about opportunities in mexico. The company focuses on the essential need for both health and food.
Q: How is the food production industry expected to evolve?
A: with the world population projected to reach 10 billion by 2050, the demand for food is expected to increase significantly. This necessitates further technological advancements and solutions to support meat,milk,and egg production,ensuring safer and more accessible food for all.