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MSD Dick Clark Announcement Print E-mail
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Monday, 07 September 2009 11:41
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Dear Colleagues:

Today we are taking an important step in building the new Merck by announcing the structure that will enable the new company's success and the leadership team that will guide us into the future.

The structure we are adopting will build on the combined strengths of Merck and Schering-Plough to create a more customer-focused, innovative and diversified global health care company.  It also will allow us to capitalize on our greatest opportunities for growth: emerging markets, biologics and vaccines; a strong and complementary portfolio spanning key therapeutic areas; an expanded pipeline to deliver innovative medicines for patients; and promising animal health and consumer health care businesses.

The actions we are taking to enable us to reach these goals include:

  • In the new Merck, Animal Health and Consumer Health Care will operate as separate business units.
  • We will integrate across our commercial, research and manufacturing divisions to ensure that we have the dedicated focus and resources necessary to become a leader in three key areas: emerging markets, biologics and vaccines.
  • The new company will create two new franchises focused on Women's Health and Endocrine, as well as Mature Brands, to take advantage of the new Merck's broader product portfolio and robust pipeline.

Perhaps most importantly, our new company will benefit from the unparalleled industry experience of senior leaders from both Merck and Schering-Plough.  In fact, about 40 percent of Schering-Plough's senior leaders will be part of the newly combined company in executive roles.

The New Merck Executive Committee

We have assembled an experienced team that I am confident has the breadth of skills and perspectives necessary to deliver on the promise of our combined company.  I am pleased to announce today the new Merck Executive Committee, which will be operational immediately upon close of the merger:

  • Stan Barshay, executive vice president and president, Consumer Health Care
  • Rick Bowles, executive vice president and chief compliance officer
  • Willie Deese, executive vice president and president, Merck Manufacturing Division
  • Ken Frazier, executive vice president and president, Global Human Health
  • Mirian Graddick-Weir, executive vice president, Human Resources
  • Peter Kellogg, executive vice president and chief financial officer
  • Peter Kim, executive vice president and president, Merck Research Laboratories
  • Raul Kohan, executive vice president and president, Animal Health
  • Bruce Kuhlik, executive vice president and general counsel
  • Sue Capps Morris, chief of staff
  • Chris Scalet, executive vice president, Global Services, and chief information officer
  • Merv Turner, chief strategy officer
  • Open position, executive vice president and chief medical officer

New Business

Schering-Plough's animal health business is a world leader, with more than 1,000 marketed products and close to $3 billion in revenue, with strong future growth potential.  Raul Kohan, currently senior vice president and president of Intervet/Schering-Plough Animal Health, will lead the animal health business for the new Merck.

Stan Barshay, currently chairman of Consumer Health Care at Schering-Plough, will guide this important growth area for the new company on an interim basis while we conduct a search for a permanent leader.

New Functions

We are also creating two new functions at the Executive Committee level with the addition of a chief compliance officer and a chief medical officer.

The chief compliance officer is one of a number of best-in-industry approaches at Schering-Plough that will be part of the new Merck.  Through central leadership and management, this position will ensure that the new Merck leads in the important areas of ethics and compliance. I am delighted that Rick Bowles, currently senior vice president of Global Quality Operations at Schering-Plough, will fill this important role for the new company.

A chief medical officer will represent the new Merck to the medical community.  We are considering talent both internally and externally for this important new position, and will announce an appointment at a later date.

In addition to the above-named positions, I am also adding a chief of staff to my team.  Sue Capps Morris, who currently leads the Americas for Merck's Manufacturing Division, will help me efficiently manage the day-to-day business of the much larger company that will result from the merger.

You can learn more about the new Merck's Executive Committee by visiting http://pubaff.merck.com/new_merck/leadership/dick_clark.html.  I also encourage you to read our external announcement about the new company's structure at http://www.merck.com/newsroom/press_releases/corporate/2009_0831.html.

My thanks to Fred Hassan and the Schering-Plough Executive Management Team and Operations Management Team for their help and insights in determining the combined company’s structure.  Their strong leadership of Schering-Plough since we announced the merger has been invaluable, and will continue to be as we work toward the merger's close.

Division and Function Leadership Teams

In addition to the changes we are making to the top-level structure of the new company, our divisions and functions are also redefining their approaches and teams in order to support a more customer-focused, innovative and diversified company.

The people we have selected for each area's senior leadership are among the best in our industry, with proven track records.  They also have the characteristics needed to help us instill the cultural attributes we want in the new Merck: courage and candor, customer focus, and rapid and disciplined decision making.  You will be hearing more about the structure for your division or function and its new leadership from your Executive Committee member.

There is no doubt that both Merck and Schering-Plough have experienced, committed leaders who have helped shape their companies into the strong organizations they are today – and I want to thank everyone for their contributions and efforts.  The decisions I have made regarding the new company's structure and leadership team were not easy, but they were necessary in order to ensure the new Merck reaches its potential – for our customers, shareholders, patients, as well as all of you.

Next Steps

I want to emphasize that until the merger closes, Merck and Schering-Plough remain separate organizations and must continue to operate that way.  Nothing in our structures or leadership will change until we officially become the new Merck.  We remain on track to close in the fourth quarter.

In the meantime, I am counting on everyone to stay focused on our current business and 2009 priorities.  I know the changes we have announced today likely bring a mix of emotions, including new and continued unknowns.  But you have already proven how well the people of Merck and Schering-Plough can perform even in uncertain circumstances, and I need your support in continuing to do just that.

We expect to name additional key members of the new Merck’s leadership, including country managing directors, at the close of the merger.  But the timeline and steps toward making other integration-related decisions will vary by organization and location, and most of you will not see any changes until well after the merger closes. Back in March when we first announced the planned merger, we said that we expected the substantial majority of employees from Schering-Plough to remain with the new company, and that is still our expectation.  It will take time to fully integrate two companies as large as ours, and I ask for your continued patience as we work to build our new company.

After the merger closes, we will begin working within our new structure and new teams, and at that point, will be able to answer more of your questions about the new company and your place in it.  Adam Schechter and Brent Saunders, who have done an outstanding job leading integration planning for Merck and Schering-Plough, will continue to support the integration process after the close as well.

The new Merck that is beginning to take shape will be a formidable company, helping to define a new era in global health care.  We can all be proud of the achievements of both companies.  I look forward to the benefits we will bring to patients and shareowners, and to working together with you to build a bright future for the new Merck and its employees.




Last Updated on Monday, 07 September 2009 11:48




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