Merck & Co. (MRK) named the management team that will be in
place after the drug maker closes its acquisition of Schering
Plough Corp. (SGP), eyeing growth opportunities in emerging
markets, biologics and vaccines.
The new Merck will have five primary divisions: Global Human
Health; Animal Health; Consumer Health Care; Merck Research
Laboratories; and Merck Manufacturing. Each division will report to
Merck Chief Executive Richard T. Clark, who was named CEO of the
combined company when the deal was signed in March. Animal-health
and consumer health care will operate as separate business units,
reporting to Clark.
The merger is still subject to antitrust clearance. To satisfy
regulators, Merck has agreed to sell its 50% stake in the Merial
animal-health joint venture to partner Sanofi-Aventis SA (SNY) for
$4 billion.
Global Human Health, the new company's largest division, which
will include prescription, vaccines and biologics businesses, will
be led by current GHH head Kenneth C. Frazier. It will include a
new Emerging Markets group.
Raul E. Kohan, head of Intervet Schering-Plough Animal Health,
will lead the new animal-health business, which will have more than
1,000 products and revenue of about $3 billion.
Stanley F. Barshay, Consumer Health Care Chairman at
Schering-Plough, will be the interim head of the new Consumer
Health Care businesses while the company searches for a permanent
leader. The new business will target growth outside the U.S.
Schering-Plough's Consumer Health Care business includes allergy
medicine Claritin, sun-protection product Coppertone and the Dr.
Scholl's foot-care line.
Merck Research Laboratories will be led by Peter S. Kim,
currently that division's executive vice president and
president.
Merck Manufacturing will be led by that group's current
president, Willie A. Deese.
Shareholders of Merck and Schering-Plough voted Aug. 7 in favor
of the drug makers' merger, hitting a milestone on the way to the
deal's expected closing later this year. Monday, Merck said the
deal remains on track to close in the fourth quarter.
Merck, which has been beset by patent expirations and research
setbacks, is gaining access to a relatively strong research
pipeline through the Schering deal.
In recent premarket trading, Merck shares were at $32.15, down
0.5%. Schering was inactive after closing Friday at $28.02.
-By Mike Barris, Dow Jones Newswires; 212-416-2330;
mike.barris@dowjones.com