Merck & Co (US)

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Merck & Co regained a position among the world's leading pharmaceutical companies in 2010 after several years of struggles against multiple setbacks. The most serious of these were the repercussions from defects in its blockbuster arthritis medicine Vioxx. Merck withdrew that product in 2004 after publication of a report which demonstrated that it increased the risk of heart attacks in some patients. A series of lawsuits ensued, although for the most part Merck was exonerated of any fault and later announced a settlement to cover all subsequent suits. As if that were not enough to contend with, the company's flagship product Zocor lost its patent in 2006, and Merck seemed to have comparatively few other blockbusters in its pipeline. Yet the company has made a dynamic recovery since then, turning what appeared to be a clutch of minor vaccines into what are now substantial products. In 2009 it acquired smaller competitor Schering-Plough, already its partner in a global asthma and anti-cholesterol joint venture. In 2014, it took the decision to exit OTC consumer healthcare, selling its portfolio to Bayer of Germany for $14.2bn. Outside North America, Merck & Co operates under the name MSD to avoid confusion with the entirely separate German company Merck KGaA.

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Singulair Remicade
Januvia Zocor
Janumet Cozaar
Gardasil Merck Vaccines
Isentress Zetia
Emend Temodar
Keytruda Nasonex
Fosamax PEGIntron
Cubicin Follistim
Propecia Nuvaring


Merck Sharp & Dohme Banyu Pharmaceutical

Recent stories from Adbrands Weekly Update:

Adbrands Weekly Update 31st Mar 2016: Interbrand confirmed Pfizer as the world's most valuable pharmaceutical brand in the branding agency's first ever specialised ranking of drug companies. Interbrand posited a valuation of just under $20bn for Pfizer, a wide lead over second-placed Roche of Switzerland at $15.5bn. Neck and neck at $13.9bn were Merck & Co and Johnson & Johnson's drug division Janssen. Novartis rounded out the top five ahead of Amgen and fast-growing Gilead, all between $13.4bn and $13.5bn. Novo Nordisk took 8th place, leaving British duo AstraZeneca and GlaxoSmithKline to complete the top ten. Download the full report here.

Adbrands Weekly Update 10th Mar 2016: Pharma giants Merck & Co and Sanofi are to dissolve their 22-year-old European vaccines joint venture Sanofi Pasteur MSD. They will take back control of their own respective products, which include Gardasil (owned by Merck), Menactra and FluZone (both Sanofi). The split was prompted in part by GlaxoSmithKline's recent acquisition of the vaccines previously controlled by Novartis, which has allowed it to leapfrog both its rivals and become the new global #1.

Adbrands Weekly Update 10th Mar 2016: Direct to consumer ad expenditure for US prescription pharmaceuticals came close to record levels in 2015, according to estimates from Nielsen, reported by industry blog DTC Perspectives. Total spend reached $5.17bn last year, capping three years of gains since 2012's low of $3.4bn. The latest figure is close to eclipsing the record $5.4bn spent in 2006. A key factor is the increase in drugs with high selling prices, such as Gilead's Harvoni, a course of which costs as much as $100,000 a year. At that level, it doesn't take an excessive number of users to get a return on investment in marketing if its successfully builds demand. That in turn has prompted a backlash from physicians and insurers, who believe that marketing costs contributes to high pricing of many new launches. Harvoni was itself the year's 5th most advertised drug, behind Valeant's Xifaxan, Sanofi's Toujeo, Merck's Belsomra, and GSK's Breo Ellipta.

Adbrands Weekly Update 21st Jan 2016: German drug company Merck KGaA scored a legal victory over its US rival Merck & Co in the UK after three years of litigation. Both companies trace their heritage to Friedrich Jacob Merck, who founded the business in Germany more than 300 years ago. In 1917, Merck KGaA's operations in America were seized by the US government when it entered the First World War and have been entirely separate ever since. As a result, Merck & Co of the US is obliged to trade outside North America as MSD or Merck Sharp Dohme. Recently though the German company has found evidence of increasing usage by Merck & Co of the standalone Merck name outside North America, and has issued legal proceedings in several countries to block this. A UK court ruled last week in its favour. Merck & Co responded in kind with its own lawsuit alleging exactly the same infractions by its German rival within North America, where it is supposed to trade only as EMD Group.

Adbrands Weekly Update 11th Dec 2014: Drug giant Merck & Co agreed to pay $9.5bn including debt for Cubist Pharmaceuticals, a specialist developer of antibiotics against hospital "superbugs". Its lead product is Cubicin, sales of which had been expected to reach $2bn in 2017. However in a case of unfortunate timing, the deal announcement was followed almost immediately by a US court ruling to allow generic competition to Cubicin as soon as 2016. Cubist had been pushing for patent protection until 2020. Merck shrugged off the adverse ruling but it prompted analysts to accuse the group of overpaying for Cubist by as much as $3bn. Merck recently completed the sale of its consumer healthcare division to Bayer in order to focus on four key areas of acute hospital care, diabetes, vaccines and oncology. Earlier this year the group also acquired Idenix, a developer of hepatitis C drugs.

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