And once again (twice in two days!), we feature a very cogent update, from our anonymous readers -- likely local to the Oss area (I cleaned up the meaning a bit, for the English sensibilities):
. . . .Merck has now given the Advisory Board in Oss the requested data why the deal with Party X was rejected by Merck. . . .
After studying those data, the Advisory board advised to re-open talks with Party X. According to advisers of the Advisory Board (RABO International and Professor Hans Schenk), the deal would benefit Merck instead of costing some estimated $700 million. If Merck chooses not to re-open the talks with Party X, the Advisory Board advises to keep the R&D open,that's what they, in fact, meant.The Advisory Board consisted of representatives of the Works Council, Trade Unions and Advisory Board of Organon. Now Merck has to decide what to do with this advice.
The court case of the Works Council against MSD is cancelled. They would have no chance, as they can't influence decisions made in the USA.
April 2, 2011 7:31 AM. . . .
I agree -- this is likely the end.
Very sad -- and all this very public fighting (and reputational damage, for New Merck) might have been avoided, with better EU legal counsel, and a more deft hand, in the planning process. Recall that either Schering-Plough's, or New Merck's legal team flat out missed the Dutch legal requirement to obtain the consent of the local Dutch Advisory Board, about a year and three quarters ago -- as the bust-up began to take shape. Unfortunate, in the extreem as thousands likely permanently lose their livelihoods, here.
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5 April 2011
Merck responds to Advisory Body
On 30 March 2011, Merck received Advice from the Advisory Body (AB) regarding the business development process related to the Oss facility. Merck has carefully considered the Advice in its entirety, and finds no basis for reconsidering its recent decision to discontinue negotiations with Party X.
Merck has fully and confidentially explained the basis for its financial calculations to the AB and has responded in detail to the AB's follow-up questions. The AB has been provided the information underlying Merck's decision, as was required by the Amsterdam District Court.
Merck now considers the Advisory Body advice process closed and has suggested to MSD-Organon that it resume work on further developing Plan B, carefully taking into account the AB's comments and suggestions regarding an alternative plan.
As previously disclosed, under Plan B the Oss facility would play a key role as a product development site supporting Merck's global clinical programs and would help support the company's strategy for emerging markets – a primary source of growth for the pharmaceutical industry over the next several years.
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