The new Merck begins operations

The corporate headquarters of the new Merck & Co will be in Whitehouse Station, NJ in the US following the completion of its US$41bn acquisition of Schering-Plough. In addition, the US Global Human Health division and Merck Research Laboratories will be headquartered in Upper Gwynedd, PA.

Merck & Co's chief executive Richard Clark said he also plans to keep the former Schering-Plough headquarters in Kenilworth, NJ and Merck's operations in Rahway, NJ, which "will continue to be important sites" for the combined company.

"We are stronger and better equipped to make a difference in the lives of people globally through our broadened, diversified portfolio of innovative medicines and vaccines, and products for consumer and animal health," he said.

"The combination of the considerable talents of Schering-Plough and Merck employees across the globe positions Merck to move through this dynamic time for our industry with a clear vision for the future."

Merck has a diversified portfolio of prescription medicines, vaccines and animal and consumer health products. A pipeline of more than 15 promising late-stage candidates spanning therapeutic categories complements this portfolio.

Merck now has approximately 106,000 employees and operates in more than 140 countries around the world, including emerging markets. The company expects to generate more than 50% of its revenue outside the US.

The company's portfolio of adult, adolescent and paediatric vaccines and medicines spans cardiovascular, diabetes, obesity, bone, respiratory, immunology, dermatology, infectious disease, oncology, neurosciences, ophthalmology, women's health and endocrinology.

The expanded portfolio also includes animal health and consumer health care products.

Merck says it will make cost savings of approximately US$3.5bn annually after 2011, which will come from all areas of the combined company. It has already announced job cuts of 15%, or about 15,000 jobs, following the acquisition.

The executive committee, reporting directly to Clark, includes: Stanley Barshay, EVP and president, Consumer Health Care; Richard Bowles, chief compliance officer; Willie Deese, EVP and president, Merck Manufacturing; Kenneth Frazier, EVP and president, Global Human Health; Mirian Graddick-Weir, EVP, Human Resources; Peter Kellogg, chief financial officer; Peter Kim, EVP and president, Merck Research Laboratories; Raul Kohan, president, Animal Health; Bruce Kuhlik, general counsel; Chris Scalet, chief information officer, Global Services; and Mervyn Turner, chief strategy officer. A new chief medical officer will be appointed.

The company will trade under the name Merck in the US and Canada and be called MSD elsewhere.