Merck KGaA to explore divestiture of generics business
German company Merck KGaA is evaluating the divestiture of its generics division (Merck Generics) as a strategic option, although it is is not engaged in initial discussions with any potential buyers.
German company Merck KGaA is evaluating the divestiture of its generics division (Merck Generics) as a strategic option, although it is is not engaged in initial discussions with any potential buyers.
Merck Generics has sales in more than 90 countries and is ranked the third largest generics business in the world. In 2005 Merck Generics reported sales of Euro 1.8bn and an operating result of €238m. The division employs approximately 5,000 people worldwide.
'Merck Generics has a strong business with good growth prospects for the future. However, it will need continued investment to fully realise its potential and strengthen its market presence,' said Dr Michael Roemer, chairman of the executive board of Merck KGaA.
'In light of the far-reaching changes occurring in the market we are considering as an option the divestiture of Merck Generics to a qualified buyer.'