New organizational structure under way at Merck
WHITEHOUSE STATION, N.J. Merck president and CEO Richard Clark on Monday announced the new organizational structure and named top management and senior leaders for the new Merck, effective upon completion of the merger of Merck and Schering-Plough.
Clark was named CEO of the combined company when the merger agreement was signed in March.
About 40% of Schering-Plough’s senior leaders will be part of the newly combined company in executive roles. As was indicated at the time of the merger announcement last March, a substantial majority of Schering-Plough employees will remain with the combined company.
The new Merck will have five primary divisions: Global Human Health; Animal Health; Consumer Health Care; Merck Research Laboratories; and Merck Manufacturing. Each division and global support function leader will be a member of the new Merck executive committee and will report directly to Clark.
Under the new structure, Animal Health and Consumer Health Care divisions will operate as separate business units reporting to Clark. The company also will create new franchises focused on “Women’s Health and Endocrine” and “Mature Brands.”
Kenneth Frazier, currently EVP and president of Global Human Health, will lead the new GHH organization, which will include the company’s prescription, vaccines and biologics businesses.
Stanley Barshay, currently chairman of Consumer Health Care at Schering-Plough, will lead this business for the new Merck on an interim basis while the company searches for a permanent leader. Clark said the new company plans to place an increased emphasis on growing the consumer business, particularly in markets outside the United States. Schering-Plough’s Consumer Health Care business currently includes a number of iconic global brands such as Claritin, Coppertone and Dr. Scholl’s.
Merck and Schering-Plough continue to expect the transaction to close in the fourth quarter of 2009. Until that time, Merck and Schering-Plough will continue to operate as separate companies.