WSJ - Merck's CEO Plans to Pursue More Drug Marketing Deals

[Guest guest]

What is going on this week...............man oh man

and by the way - " During that period, it will also file for approval of a

vaccine for rotavirus-induced infant diarrhea. " this is Offit's

vaccine, I imagine, since he was developing one for Merck (anyone know) -

no wonder he's spouting off about how safe they are.

Sheri

*******

From Belkin

The rest of its future rests on vaccines.

Merck will file for approval of Proquad, a combination vaccine for kids

that protects against measles, mumps, rubella and chicken pox in the second

half of next year.

In the second half of 2005, Merck will file for approval of adult vaccines

for human papiloma virus and shingles, the adult form of chicken pox.

During that period, it will also file for approval of a vaccine for

rotavirus-induced infant diarrhea.

http://online.wsj.com/article/0,,SB107098190875612700,00.html?mod=home_whats

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Merck's CEO Plans to Pursue More Drug Marketing Deals

By HOLLISTER H. HOVEY

DOW JONES NEWSWIRES

WHITEHOUSE STATION, N.J. -- Merck & Co., which has kept drug development

within the company, will be making more marketing deals in the future,

Chief Executive Ray Gilmartin said.

However, a large-scale merger would only give the drug maker a near-term

boost and cost too much long term, he said. " That's not an appropriate

trade-off, " Mr. Gilmartin said, speaking at the company's business briefing

in Whitehouse Station.

The company is currently pursuing 80 potential partnerships across many

medical areas for early- and late-stage compounds, he said. In 1999, the

company signed only 10 deals with outside partners; this year, it has

completed more than 40.

Merck made a name for itself by steadfastly standing by its belief that its

labs could make its own medicines, bucking the trend of mergers and major

licensing deals that the rest of the industry has embraced.

The company's big cholesterol drug Zocor will lose patent protection in

2006, leaving many fearing for the company's growth prospects during that

period -- especially given recent setbacks in the company's pipeline. Mr.

Gilmartin said the company hopes to have some growth during that period.

Much of that growth will come from Merck's joint venture with

Schering-Plough Corp. -- one of its rare large marketing deals -- for a

pill that combines Zetia, the Schering-Plough drug that absorbs cholesterol

in the intestine, with Zocor. By the end of the month, Merck expects to

file for approval of Arcoxia, a follow-up to its COX-2 inhibitor arthritis

drug Vioxx.

The rest of its future rests on vaccines.

Merck will file for approval of Proquad, a combination vaccine for kids

that protects against measles, mumps, rubella and chicken pox in the second

half of next year.

In the second half of 2005, Merck will file for approval of adult vaccines

for human papiloma virus and shingles, the adult form of chicken pox.

During that period, it will also file for approval of a vaccine for

rotavirus-induced infant diarrhea.

A drug for diabetes called MK-0431 is on track to be filed in 2006, he said.

In the meantime, the company is trying to cut costs across all areas of its

business, not just manufacturing, Mr. Gilmartin said.

During its third-quarter conference call in late October, Mr. Gilmartin

announced that Merck was going to eliminate 4,400 positions. " These

reductions will be benefiting our bottom line in 2004 and are expected to

generate annual savings of $250 million to $300 million in 2005 in payroll

benefits alone, " he said.

Other efforts, including reducing overall capital project costs, optimizing

manufacturing-capacity utilization and cutting down inventories, are

expected to enhance Merck's free cash flow, or cash flow from operations

less capital expenditure, by approximately $640 million by 2006, he said.

Write to Hollister H. Hovey at hollister.hovey@....