The products to be integrated into the new company are expected to generate revenue of around $6.5bn in 2020. Credit: freestocks.org on Unsplash.

Merck (MSD) has announced plans to establish some of its businesses into an independent, publicly traded company, for core area focus.

The company’s women’s health, ‘legacy brands’ and biosimilars assets will become part of the new business, expected to generate revenue of around $6.5bn within Merck in 2020.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Merck will continue to work on its oncology, vaccines, hospital and animal health businesses, along with investment in research and development (R&D) of new medicines.

The spin-off is expected to drive the growth of both Merck and the new company.

Merck chairman and CEO Kenneth Frazier said: “By optimising our human health portfolio, Merck can move closer to its aspiration of being the premier research-intensive biopharmaceutical company, while also properly prioritising a set of products at NewCo that are important to public health and the patients who rely on them, and which present real opportunities for growth.”

The company expects that the retained assets, including Keytruda and diabetes drugs, will offer benefits at commercial scale.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Merck estimates the spinoff will reduce the company’s human health manufacturing footprint by nearly 25%, as well as the number of manufactured and exchanged human health products by around 50%.

Meanwhile, the company will focus on supporting the women’s health industry by expanding Nexplanon (etonogestrel implant) franchise, contraceptive and fertility businesses.

The company will also work with its partner Samsung Bioepis to boost the biosimilars business.

Furthermore, the firm will have a global presence with about 75% of sales generated from markets outside the US and almost 10,000 to 11,000 employees.

The company is estimated to have $8.5bn-$9.5bn in initial debt. Merck expects to obtain a tax-free dividend of $8bn to $9bn from the business.

Last July, Pfizer announced the spin-off of its off-patent branded and generic medicines division Upjohn, which will merge with Mylan to form a new company.