(Yicai Global) Sept. 22 -- Merck opened a biologics testing center in Shanghai yesterday, the German pharmaceutical giant’s first in China, to cater to the research and development needs of local drugmakers.

A viral clearance laboratory, one of the most critical steps in drug development, formed the first phase of the EUR29 million (USD28.6 million), 5,000-square-meter center, Darmstadt-based Merck announced yesterday. The second phase will open late next year and offer cell line characterization and lot release testing services.

The Shnghai facility “signifies another major investment milestone in our strategic journey in China and to our commitment to building a robust presence within the country for our Chinese clients and partners,” said Marc Jaffre, managing director of Merck Life Science China.

The new center is another important facility for Merck, in addition to those in the United States, the United Kingdom, and Singapore, that will help Chinese biopharm firms locally carry out virus clearance studies from pre-clinical development to commercialization, and will meet China’s double-digit demand for such services, Merck said.

“The opening of this viral clearance lab signifies a new chapter in our partnership with our Chinese clients who are at the forefront of reshaping modern medicine,” said Dirk Lange, head of Life Science Services, Life Science business sector at Merck.

“This lab and future labs will provide our Chinese customers with critical local services backed by our 75 years of global experience in the testing market,” Lange added.

Merck achieved record earnings growth last year, with net profit surging 54 percent to EUR3.1 billion (USD3 billion) from a year earlier. Revenue from sales jumped 12 percent to EUR19.7 billion (USD19.3 billion), and targets EUR25 billion in 2025 by increasing investment.

Editors: Dou Shicong, Futura Costaglione