Merck & Co. CEO outlines global plans for the newly merged company
Merck & Co. CEO Richard Clark outlined global plans for the company on Wednesday following its recently completed merger with Schering-Plough, saying that he intends to keep Schering-Plough's Kenilworth, New Jersey headquarters.
The CEO indicated that at this time all other sites will continue to operate as they did prior to the merger, and that an evaluation of which staff and facilities to keep is underway, with no definite timeline set for those decisions.
Regarding its facilities planning, the Schering-Plough headquarters, along with Merck's operations in Rahway, New Jersey, "will continue to be important sites," Merck noted.
The company, which now has operations in over 140 countries, expects to make cost savings across all of its business areas as it eliminates around 16 000 employees from its combined staff of 106 000 people.
The merged drugmaker will be split into five main divisions, with around 40 percent of Schering-Plough's senior management being offered positions, according to Merck. The arms of the combined company include its manufacturing operations and research group, as well as its prescription drug business and two Schering-Plough units, animal health and consumer health.
In addition, Merck stated that approximately half of the combined company's revenue will come from outside the US, which compares with an overseas revenue figure of 44 percent for Merck alone in the first nine months of this year.
The drugmaker has around $8 billion in cash and investments, with a target of $15 billion for 2013. The cash flow and cost savings are intended to enable the company to invest in licensing deals to bolster its pipeline, which currently consists of at least 15 drugs in late-stage development. Merck confirmed that it expects the combination with Schering-Plough to add modestly to earnings next year, as it looks to achieve cost savings of around $3.5 billion annually "beyond 2011."
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Reference Articles
 Merck CEO Clark expects to keep Schering-Plough headquarters - (Bloomberg) |
| Merging Merck - (Forbes) |
| Interview - Merck research chief sees more deals ahead - (Forexyard) |
| New Merck begins operations - (Merck) |
| Merck predicts EPS growth in high-single digits next several years - (Morningstar) |
| Merck-Schering deal complete - (The Philadelphia Inquirer) |
| Merck offers postmerger savings target (free preview) - (The Wall Street Journal) |
| Merck, now No. 2 drugmaker, set for future buys - (The Washington Post) |
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