Merck Serono will be combined with the current Merck Ethicals division with its headquarters in Geneva, Switzerland. Merck said that the division will create a leading global supplier of biopharmaceutical products with pro forma sales (2005) of around $4.68 billion and about 14,500 employees worldwide. The R&D budget amounts to about $1.3 billion.
“With the combined innovative power of two strong companies, we have the unique opportunity to create a superb union of pharmaceutical chemistry and biotechnology,” said Elmar Schnee, new CEO of Merck Serono.
Special emphasis will be placed on the therapeutic areas of oncology, neurology and autoimmune and inflammatory diseases, the company said. In addition, Merck Serono will have a presence in the markets for infertility, metabolic endocrinology, type 2 diabetes and cardiovascular treatments.
Globally, Merck Serono will operate under the new name and with a new logo, which will appear on buildings, letterhead and business cards. Pharmaceutical packaging will also be changed to the new design in the coming months and years. In the US, the business will operate under the name EMD Serono.
Merck is now thought to be considering selling its generics division in order to pay for the Serono acquisition, according to reports. With the addition of Rebif, the multiple sclerosis treatment, the Serono purchase will double Merck’s branded drugs sales and should see the company become Europe’s largest biotech firm.