Free Newsletter
More suffering at Merck ahead
Free newsletter via e-mail
Tools
Merck has seen its share of ups and downs (mostly downs) over the last few years, but it seemed like things were finally turning around for the company--despite myriad lawsuits over (need we say it again?) Vioxx.
Under the guidance of Richard Clark (photo), however, the company had eight drugs approved in just two years, a feat that no doubt helped raise its standing in the eyes of investors. In efforts to weather the storm, Clark led a restructuring effort that resulted in thousands of job cuts.
Now Merck stock is down 50 percent compared to about a year ago and the stock has performed worse than that of any other major pharma company. Tomorrow, Clark will try to impress investors with some smooth moves, but he had better have a trick up his sleeve if he wants to impress Wall Street, writers at Forbes say. Wall Street investors won't settle for anything less than some remarkable research or news of a smart and strategic acquisition.
- read the Forbes story
Related Articles:
Merck - Top 5 layoffs of 2008
Analyst gloomy on Merck trends
Merck racks up time in court
Fortune scolds Merck for "risky" programs
Comments
By Anonymous | Posted 5:23pm | December 4, 2008
Here is the scoop on Merck and Richard Clark. The remarkable continuing downfall of Merck should be pinned on Mr Clark, Peter Kim and all the Board of Directors. The restructuring effort has been nothing short of disaster. Dick Clark's Plan to Win fell well short of it's objectives and the cost cutting continues. Merck could have made good aquisitions of products but did not listen to the rank and file about good opportunities. Instead management continued on their failed strategies and arrogant ways. The company pledged to change the culture but has keep the people in the organization who are long standing and live in the past. All the future young talent has been purged form the company and this will surely clog new thinking.
The reality is Merck has lost it's leadership position in the industry and will continue to do so under the current leadership. No new ideas no new strategies no new products close to market and some aquisitions of products are so far behind the competitors that they will be 2nd 0r third entrants into the market. A position Merck does not know how to handle.
Time to purge the cancer in the company and that cancer is at the top. Investors are wise to stay away while this cancer is allowed to grow.
Post new comment
Paid Research Reports
- Stakeholder Opinions: Vaccines in Emerging Markets (Asia) - Opportunities in China, India, South Korea and Taiwan
- Big Pharma Performance Before, During and Beyond the Global Recession
- Optimizing Lifecycle Management: Maximizing commercial lifespan through label expansion and combination products
- The CRO Market Outlook: Emerging markets, leading players and future trends
- Pharmaceutical Sales Force Effectiveness Strategies
- Commercial Insight: Influenza Vaccines and Antivirals - The pandemic's long-term impact
