Drugs group merger will eliminate 16,000 jobs
Mar 10 2009 by Peter McCusker, The Journal
Merck has two main UK sites – its UK regional headquarters at Hoddesdon in Hertfordshire and its manufacturing site at Cramlington. The factory in Northumberland has benefited from a number of major investment programmes over the years and is Merck’s largest formulation plant and packaging centre outside the United States.
Merck said it was too early to say what impact the merger would have on the UK operations and staff numbers.
The groups announced heavy redundancy programmes last year, but said the deal should allow them to make annual cost savings of about £2.5bn each year after 2011.
Merck chief executive Richard Clark said the takeover would create a company “built for sustainable growth and success”.
He said: “The combined company will benefit from a formidable research and development pipeline, a significantly broader portfolio of medicines and an expanded presence in key international markets, particularly in high-growth emerging markets. The efficiencies we gain will allow us to invest in strategic opportunities while creating meaningful value for shareholders.”
Major pharmaceutical groups worldwide have announced tens of thousands of job losses in recent months as they suffer competition from cheap generic rival products. The sector is consolidating rapidly to battle slowing sales, with Pfizer less than two months ago unveiling a £49bn deal to buy Wyeth.
