Merck, on Monday, announced that it will keep 40 percent of Schering-Plough’s executive staff following the merger of the two companies. However, most of Merck’s top brass would remain in place.
Schering execs Raul Kohan and Stanley Barshay will run the Animal Health and Consumer Health businesses, respectively, while the Global Human Health, Research, and Manufacturing divisions will be headed by their current Merck managers.
Global Human Health will be run by Kenneth Frazier, and will encompass vaccines, and biologics—and now, emerging markets. Because the majority of Schering’s business is outside the United States, emerging markets will have the same precedence as biologics and vaccines. Twenty-five percent of Merck’s early-stage pipeline will be the result of licensing and alliances.
“These cross-divisional efforts will ensure that the new Merck’s commercial, research, and manufacturing divisions have dedicated resources to focus on these opportunities” said Merck spokesperson Amy Rose.
Earlier this year, when Merck announced that it would purchase Schering-Plough for $41.1 billion, it stated that a substantial number of employees would remain with the combined company.
Other confirmed positions include:
- Peter Kim was named president of Merck Research Laboratories
- Willie Deese was named head of manufacturing
- Richard Bowles III was named chief compliance officer
- Adam Schechter will head the integration effort for Merck
- Brent Saunders will continue leading Schering-Plough’s integration team
- Mirian Graddick-Weir was named executive vice president Human Resources
- Peter Kellogg was named executive vice president and chief financial officer
- Bruce Kuhlik was named executive vice president and general counsel
- J. Chris Scalet was named executive vice president, Global Services, and chief information officer
“This is a complex undertaking, but one that people are wholeheartedly committed to,”Rose said. â€œWe are bringing together, literally, the best that the two companies have to offer.”
Merck didn’t make any departure announcements, but did confirm that Schering CEO Fred Hassan and Global Vaccines President Margaret McGlynn will retire in November.
Merck CEO Richard Clark said, “Our integration teams have been busy laying the groundwork for the combined company, and thanks to their hard work and dedication, our integration planning is proceeding smoothly and on schedule.”
Merck and Schering-Plough will continue to be run as independent companies until the transaction closes toward the end of 2009.