Merck & Co. Inc. has officially acquired Schering-Plough and its subsidiary Intervet/Schering-Plough Animal Health. The companies began combined operations on Nov. 4.
Merck, which sold its 50 percent of Merial Ltd. to joint venture parnter Sanofi-Aventis on Sept. 18, first announced its intentions to acquire the Kenilworth, N.J.-based company for $41.1 billion in early March.
Richard Clark, chairman, president and chief executive officer of Merck, will lead the combined company, which will operate under the Merck name and be headquartered in Whitehouse Station, N.J.
“With our merger now complete, we are ready to deliver on the promise of a new Merck built on a foundation of scientific innovation and dedication to the well-being of patients around the world,” Clark said. “On ‘Day One’ for the new Merck, we are stronger and better equipped to make a difference in the lives of people globally through our broadened, diversified portfolio of innovative medicines and vaccines, and products for consumer and animal health.”
Merck’s animal health business has more than 1,000 marketed products and generates about $3 billion in revenue, according to the company.
Merck reported that its integration plans are focused on the following priorities: an effective transition for customers and employees; putting the right people in the right jobs; realizing projected merger synergies in the form of cost savings and revenue growth opportunities; and maintaining momentum in the company’s late stage pipeline.
About 40 percent of Schering-Plough’s senior leaders are said to be joining the company. Merck now has about 106,000 employees and operates in more than 140 countries around the world, including emerging markets. The company expects to generate more than 50 percent of its revenue outside the United States.
Merck predicts to achieve substantial incremental cost savings of about $3.5 billion annually beyond 2011, which are expected to come from all areas across the combined company. In addition to its animal health division, Merck’s other divisions include Global Human Health, Consumer Health Care, Merck Research Laboratories and Merck Manufacturing. <HOME>