Big pharma, Insight journal - Dealtalk

Industry analysis: Merck’s Frazier Says He Won’t Follow Pfizer in Splitting Company

Posted on 01 June 2012

Tags: , , , , ,

Merck & Co Chief Executive Officer Ken Frazier said he doesn’t plan on breaking up the company by splitting off businesses the way Pfizer and Abbott Laboratories are doing, as reported by industry analysis experts.

“My philosophy is fix what is broke, don’t do the fad of the day,” Frazier said at the Sanford C. Bernstein conference in New York today. “I remember a few years ago when people said it would be the diversified companies that were going to get the premium in the market.”

Pfizer in April said it will sell the company’s infant-nutrition business to Nestle SA for about $11.9 billion, part of CEO Ian Read’s plan to reduce the New York-based drugmaker’s size. Abbott said it would split into a pharmaceuticals manufacturer and a business focusing on medical devices, generic medicines and nutritional drinks by year-end.

Merck’s consumer and animal units complement its prescription drug business, Frazier said. He also said he doesn’t see any large deals that would create value.

Merck, based in Whitehouse Station, New Jersey, paid $49 billion in 2009 for Schering-Plough Corp., a deal that has taken a lot of effort to integrate, said Frazier. He said he doesn’t plan on doing another large deal and is instead focused on smaller, targeted biotech acquisitions.

Merck’s animal health business had $3.3 billion in sale last year and its consumer health unit, which sells over-the-counter medicines, generated $1.8 billion in revenue. Merck gets 85 percent of its revenue from prescription drugs and vaccines.

Read the full article at Bloomberg (link no longer available)

 

Related

Read: more on dealtalk in pharma, biotech, life science partnering deal news, insights and glossary

Read: Big pharma deal news - latest deal news for top 50 pharma / big pharma companies

Report: Partnering Deals and Alliances with Merck & Co

View: Top 50 pharma – overview of top 50 pharmaceutical companies by revenue – partnering activity, deal news, partnering dealtalk

View: Current Partnering’s Partnering Scorecard – view top life science partnering deals by value

View: Current Partnering’s Deal Metrics – the latest deal trend infographics for life science deal making

View: Current Partnering’s Big Pharma Deal Making Scorecard – latest trends in big pharma deal making activity

View: Current Partnering’s Big Biotech Deal Making Scorecard – latest trends in big biotech deal making activity

Signup: Current Partnering Dealmakers Update – weekly newsletter providing the latest life science industry deal news, deal making trends, partnering events – sign up now

Signup: Current Agreements Deals Review – monthly newsletter - reviewing the previous month’s life science deal making – partnering, M&A and financing – sign up now

Subscribe: Current Agreements life sciences partnering, M&A and financing deals database – find out more

Follow us on: LinkedIn Current Partnering | LinkedIn Business Development Network | @Currentpartner on Twitter

Print Friendly, PDF & Email

Leave a Reply