Merck Charts an R&D-Focused Course Starting With a $6.5B Spinoff
Summary
Speaking on a conference call Wednesday, CEO Ken Frazier said that spinning off the new company will allow Merck to focus on marketing those products as well as developing new ones that will shape the Kenilworth, NJ, company’s portfolio in years to come. “This is about taking action today that will ensure the long-term viability of Merck, as well as allowing the products that no longer fit to thrive in a new operational structure,” Frazier said. The new company’s portfolio will include contraceptive products that generated more than $1.6 billion in global sales in 2018, and biosimilars in immunology and cancer that are marketed under a partnership with Samsung Bioepis. Last year, Pfizer (NYSE: PFE) announced its Upjohn division, which markets off-patent medicines, would merge with generic drug maker Mylan (NASDAQ: MYL). Speaking on a conference call, CEO Emma Walmsley said that the separation of consumer health would happen over the next two years, leaving the “New GSK” focused on science related to the immune system, genetics, and the use of new technologies.
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