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Merger Planning on Track; Expected to Close in Fourth Quarter
New Merck Organized to Maximize Broader Product Portfolio With a Robust R&D Pipeline to Better Meet Patient Needs
WHITEHOUSE STATION, N.J., Aug. 31, 2009 - Richard T. Clark, chairman, president and chief executive officer of Merck & Co., Inc. (NYSE: MRK) today announced a new organizational structure and named top management and senior leaders for the new Merck effective upon completion of the merger of Merck & Co., Inc. and Schering-Plough Corporation (NYSE: SGP). Mr. Clark was named CEO of the combined company when the merger agreement was signed in March.
The new structure will build on the combined strengths of Merck and Schering-Plough to create a more customer-focused, innovative and diversified global health care company positioned to capitalize on the greatest opportunities for growth. Animal Health and Consumer Health Care will operate as separate business units reporting to Mr. Clark.
The new company will integrate across its divisions to take advantage of the significant growth opportunities in three key areas: emerging markets, biologics and vaccines. This cross-divisional approach will ensure that the new Merck's commercial, research and manufacturing divisions dedicate the focus and resources necessary to become a leader in these businesses.
The organizational structure for the new Merck is designed to capture the opportunities in the broader and deeper in-line pharmaceutical franchises that will be created through the integration of Merck and Schering-Plough products. The company also will create new franchises focused on Women's Health and Endocrine, and Mature Brands.
The new Merck will benefit from the unparalleled industry experience of senior leaders from both Schering-Plough and Merck. The leaders named by Mr. Clark today will serve on the company's new Executive Committee. They, in turn, named the executives who will lead their divisional and functional teams at the new Merck. About 40 percent of Schering-Plough's senior leaders will be part of the newly combined company in executive roles. As was indicated at the time of the merger announcement last March, a substantial majority of Schering-Plough employees will remain with the combined company.
“Today’s announcement is an important step in establishing the new Merck as the leading global health care company – one that will make a difference in the lives of patients around the world,” said Mr. Clark. “The combined company will draw upon the expertise of the people of both Schering-Plough and Merck. Collectively, the new leadership team has decades of industry experience and proven management track records. To complement our joint talent, we will be adding leaders from outside the two companies with specific experience in key areas. I am confident that the new Merck will have the right team in place to be able to deliver on the promise of this strong combination with Schering-Plough.”
The new Merck will have five primary divisions: Global Human Health; Animal Health; Consumer Health Care; Merck Research Laboratories; and Merck Manufacturing. Each division and global support function leader will be a member of the new Merck Executive Committee and will report directly to Mr. Clark.
Animal Health
Raul E. Kohan, currently senior vice president and president of Intervet Schering-Plough Animal Health, will lead the new Merck's animal health business. Mr. Kohan will report to Mr. Clark and serve on the Executive Committee.
Schering-Plough's Animal Health business is a world leader with market-leading products for a broad range of species and strong growth potential. The division has more than 1,000 marketed products and generates approximately $3 billion in revenues from business operations in more than 140 countries.
http://www.merck.com/newsroom/press_releases/corporate/2009_0831.html
