Tuesday, November 29, 2005

Merck - Looking to buy

Mercks CEO is interested in buying a smaller drugmaker whose products could boost revenue over the next few years.

"We are interested in any company that would be aligned with our research capabilities and that would give us top-line growth over the next few years," Richard Clark told Reuters in an interview.

Clark, a former head of manufacturing at Merck who became CEO in May, said the company would continue to license drugs from biotech companies but that an outright acquisition of a drugmaker might offer particular advantages.

"Targeted acquisitions have always been a part of Merck's strategy; I may be a little more aggressive now in stating it," Clark said. He said such a deal could enable Merck to acquire numerous drugs, including ones in early-stage research.

But Clark also said he was not interested in "mega-mergers".

Insiders' view: Merck should get in line with the rest of Big Pharma!

All of the "big ten" have this strategy on their minds, as it props up the current business model and delays the day when the industry has to face its troubles.

The problem is: too many barracudas not enough sardines!

Having said that. Insider would imagine that some of the family owned European pharmas (Serono, certainly, Boehringer Ingelheim, possibly, German Merck, possibly) could be available if the price was right!

Reuters

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