Merck announced yesterday that it will be closing 8 R&D facilities. This is parto fits planned initiative to save up to $3.5 B annually as a result of its purchase and megamerger of Schering-Plough.
Ultimately, the company has stated it will layoff 15,000 workers. Merck also has plans to close 14 manufacturing facilities since the merger reducing its worldwide total to 77 from the original 91 at the time of the purchase.
"These changes are crucial to drive future growth and realize the promise of being a global health care leader for the long term" said Merck CEO Richard Clark as reported in Fierce Biotech.
Once again, a megamerger really results in immediate loss of jobs as the company has to restructure to help pay for the merger which ironically provides some short term revenue relief but may not provide the boost out the the pipeline that is really needed. Merck will still be pursuing many other outside collaborations to fill that pipeline - thus the R&D layoffs and manufactuirng closings.
Posted by Bruce Lehr July 9th 2010.