Merck expands South Africa presence

24 June 2010

US firm Merck & Co has entered into a five-year strategic partnership with South Africa’s second-largest pharmaceutical company, Adcock Ingram, to jointly promote and distribute their products in the country.

The products include over-the-counter products and selected prescription medicines currently registered in South Africa by MSD (the name used by Merck outside the USA) and Schering-Plough, a subsidiary of Merck.

Emerging market strategy

Merck expects emerging markets to account for more than 25% of its global pharmaceutical and vaccine revenue by 2013, based on the implementation of the company’s emerging markets strategy.

“We expect sales from these geographies to be a key contributor to our future performance,” MSD emerging markets president Stefan Oschmann said in a statement this week. “As part of our pursuit of that growth, we still strive to expand our presence across these markets by actively seeking local collaborations.

“This collaboration, with a highly-respected local partner, shows our commitment to invest in South Africa.”

Oschmann said the deal also positioned both companies to address the serious burden of disease and provide people with access to affordable, high-quality health care.

Enhancing product pipeline

Adcock Ingram CEO Jonathan Louw said the agreement was consistent with the company’s growth strategy, adding that they would bring a “formidable marketing and distribution capacity backed by an excellent track record” to the partnership.

“We are expanding our collaboration with MSD because it will enhance our diverse portfolio and broaden our pipeline of new products in the marketplace,” he said. “We are excited about partnering with the second-largest pharmaceutical company in the world and a global leader in prescription brands and consumer care products.”

Adcock Ingram and MSD have been working together successfully in South Africa for a number of years. The collaboration between MSD and Adcock will be managed by a joint operating committee consisting of management members of both companies.

Financial details of the collaboration were not disclosed.

SAinfo reporter

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