Merck to create biotech unit

Merck Phase III pipeline [1]

[1]

CLICK IMAGE FOR MORE

With its bottom line weakening [2] and generic competition growing, Merck says it will create a new unit to develop biotech drugs. Merck BioVentures will not only develop novel therapies but also target follow-on biologics [3], successors to existing biotech drugs.

Merck's announcement puts it in line with big pharma companies like Pfizer [4] and AstraZeneca [5], which have their own biotech initiatives underway. Biotech drugs are seen as a big driver of future revenue, and Merck is anxious to position itself as a player at a time the company has been slashing costs.

"Next year will continue to be a period of fundamental transformation that establishes Merck as a different competitor for the next decade," said Chairman and CEO Richard Clark. "We look to emerge leaner and more responsive to our customers' needs and with a pipeline that offers significant potential."

Merck also says it plans to file three NDAs next year for telcagepant, a migraine treatment; the heart failure drug rolofylline; and a drug combining Zetia and Lipitor for cholesterol.

- here's Merck's statement [6]
- check out the report [7] from the Wall Street Journal
- read the AP report [8]

Related Articles:
Merck's 2009 estimates disappoint Street [2]
More suffering at Merck ahead [9]
Merck - Top 5 layoffs of 2008 [10]
Amgen, Amylin lobby against biogenerics [3]