1 October 2009 Business
Industry news, October 2009
Germany’s Bayer has won a bidding contest for US giant Merck & Co’s consumer care business unit, seemingly thanks to a heart drug collaboration sweetener. Bayer’s $14 billion [£8.3 billion] bid beat offers from bidders including the UK’s Reckitt–Benckiser for over-the-counter (OTC) products including the anti-allergy drug Clarityn and Dr Scholl’s footcare range. Merck (which operates as MSD outside the US) in turn will pay at least $1 billion to team up on Bayer’s soluble guanylate cyclase (sGC) modulator cardiovascular drugs, including the first-in-class Adempas (riociguat).
Bayer will add Clarityn and Dr Scholl’s footcare products to a stable of household names including Aspirin © Bayer AG
Savings are expected mainly in sales and administration, although some may also come in research and manufacturing. A Bayer spokesperson tells Chemistry World that the sites involved and ‘first line employees’ in research and production are unlikely to be affected. But the main benefit, Dekkers stressed, is combining ‘two highly complementary businesses with virtually no overlap and a great product mix that closes gaps both in category and geography’.
Merck & Co announced last year that it was slimming down to focus on R&D following its 2009 acquisition of Schering-Plough. Beyond getting what chief executive Ken Frazier called at an investor briefing ‘a very good price’ for its consumer care assets, the sGC agreement fits with that. The companies will jointly market Adempas and a follow-up, vericiguat, which is in phase II clinical trials. Together, they’ll also develop and commercialise earlier-stage compounds addressing the same target in a 50:50 cost–profit split.
Though this deal closely follows a similar exchange by Novartis and GSK, Mary Alice Lawless, managing director of OTC strategy and intelligence firm everythingHealth, says the moves don’t represent a sudden shift. ‘[Pharma companies] have each undertaken deep strategic scenario analysis to determine where their assets line up for long term success,’ she says. ‘For those who are committed to the OTC space – like GSK and Bayer – they have a plan to provide relevant value in this market. For those departing – like Novartis and Merck – the plan has a different focus.’
22 October 2014 Research
Evidence emerges for vibrational bond first proposed 30 years ago
31 October 2014 Research
Unusual spin state could open the door to new and exciting chemistry