Merck to Expand Business in South Africa

~ Strategic Collaboration with Leading Local Company Adcock Ingram Announced ~

~ Merck's Strategy for Growth in Emerging Markets Furthered ~

WHITEHOUSE STATION, N.J.--(BUSINESS WIRE)-- Merck (Merck is known as MSD outside the United States and Canada) today announced a strategic collaboration between MSD South Africa and Adcock Ingram, a publicly held South African company, to co-promote and distribute a number of established MSD products in South Africa. The products that will be jointly promoted by MSD and Adcock Ingram include over-the-counter (OTC) products and selected prescription medicines currently registered in South Africa by MSD and Schering-Plough. Financial details of the collaboration were not disclosed.

Collaboration Will Drive Growth

“The collaboration announced today is part of Merck's long-term strategy of expanding our geographic presence which will position us for leadership in emerging markets,” said Dr. Stefan Oschmann, president, Emerging Markets, MSD. “We expect sales from these markets to be a key contributor to our future performance and growth. As part of our pursuit of that growth we will strive to expand our presence across emerging markets by actively seeking local collaborations. This collaboration, with a highly respected local partner, shows our commitment to invest in South Africa. It also better positions us to address the serious burden of disease in the country and provide the people and patients of South Africa with access to affordable, high-quality health care."

Merck expects that the Emerging Markets will account for more than 25 percent of its global pharmaceutical and vaccine revenue in 2013 based on the implementation of the company’s emerging markets strategy. To accomplish this, the company intends to continue to successfully launch new products, optimize Merck’s robust in-line portfolio of medicines, vaccines, follow-on biologics and consumer care products, and fully leverage the market for branded generics with the company’s portfolio of mature brands as well as targeted business development.

Jonathan Louw, chief executive officer, Adcock Ingram added, “We are excited about the collaboration with MSD because it will enhance our diverse portfolio and broaden our pipeline of new products in the market place. Together, we have a formidable marketing and distribution capacity backed by an excellent track record of delivery to all our clients.”

Large Portfolio of Products Part of the Collaboration

MSD entered into a collaboration with Adcock Ingram to co-promote and distribute products from various therapeutic areas including: asthma, dermatology, hypercholesterolemia, hypertension, migraine and osteoporosis as well as a portfolio of over the counter medications.

About Adcock Ingram

Adcock Ingram is a publicly held company with a market capitalization of about USD $1.1 billion (South African Rand $9 billion) and occupies approximately 10 percent of the South African private pharmaceutical market. The company has two businesses - pharmaceuticals and hospital products - both of which deliver essential services to a wide customer base. Pharmaceuticals provide an extensive range of prescription medicines across a broad range of therapeutic classes in addition to over-the-counter products and a selective range of personal care products. Its hospital products business is South Africa's largest supplier of hospital and critical-care products, blood systems and accessories as well as products used for renal dialysis and transplant medication. The company also supplies established brand name medicines and equipment to medical, research and pathology laboratories through their scientific group.

About Merck

Today's Merck is a global healthcare leader working to help the world be well. Merck is known as MSD outside the United States and Canada. Through our medicines, vaccines, biologic therapies, and consumer care and animal health products, we work with customers and operate in more than 140 countries to deliver innovative health solutions. We also demonstrate our commitment to increasing access to healthcare through far-reaching programs that donate and deliver our products to the people who need them. Merck. Be well. For more information, visit

Forward-Looking Statement

This news release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such statements may include, but are not limited to, statements about the benefits of the merger between Merck and Schering-Plough, including future financial and operating results, the combined company’s plans, objectives, expectations and intentions and other statements that are not historical facts. Such statements are based upon the current beliefs and expectations of Merck’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements.

The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: the possibility that the expected synergies from the merger of Merck and Schering-Plough will not be realized, or will not be realized within the expected time period, due to, among other things, the impact of pharmaceutical industry regulation and health care legislation; the risk that the businesses will not be integrated successfully; disruption from the merger making it more difficult to maintain business and operational relationships; Merck’s ability to accurately predict future market conditions; dependence on the effectiveness of Merck’s patents and other protections for innovative products; the risk of new and changing regulation and health policies in the U.S. and internationally and the exposure to litigation and/or regulatory actions.

Merck undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in Merck’s 2009 Annual Report on Form 10-K and the company’s other filings with the Securities and Exchange Commission (SEC) available at the SEC’s Internet site (


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KEYWORDS:   United States  North America  New Jersey  South Africa  Africa

INDUSTRY KEYWORDS:   Health  Biotechnology  Pharmaceutical  Other Health