Thursday, June 27, 2013

Merck FINALLY Sells Legacy Schering-Plough Oss API FacilityTo Aspen; Signs Long Term Supply Agreement


As we first reported in mid-February of 2013, from Dutch sources (and a rumor piece here, dated February 4, 2013), Aspen (a South African pharma major) had been in talks with MSD to purchase the active pharmaceutical ingredient lines in the Netherlands.

This morning, US news outlets are confirming that the deal has been done. This also explains the persistent chatter (most recently, about two weeks ago) of additional job cuts at Oss, rumored to occur at the end of June.

Here is Reuters reporting on the US $1 billion deal -- do go read it all:

. . . .Africa's biggest maker of generic drugs said it would buy an active pharmaceutical ingredient (API) business located in the Netherlands and a portfolio of 11 drug brands from Merck. . . .

From Merck's perspective, then: "a billion here; a billion there. . . and pretty soon you are talking about some real money. . ." That is, even at ten figures, it is only a drop in Merck's gargantuan buckets. The deal must still clear South African antitrust review, but that ought not be much of an obstacle. It will likely close before the end of the year. My thoughts are with our friends across the pond, this morning.

While Merck has saved quite a few local Netherlands jobs, by doing this deal -- this marks the end of all those proud, fine legacy local operations of multinational companies (think Organon, Intervet, and Merial, in local Dutch operations) -- companies that Schering-Plough "rolled up," and then systematically laid to waste.

3 comments:

Anonymous said...

How right your closing comments are, Condor! I am the reader that found your blog while in Oss to review operations during the Merck/SP merger.

We, at Legacy Merck, had literally close to no idea that Organon had not been integrated into LSP! I remember being shocked that we had so little visibility into a significant part of LSP.

I met a lot of folks there who were very good at their jobs and cared deeply about their work, company and town. I am glad the facility was not shuttered and hope their new boss is very much not the same as their old boss.

Condor said...

Thanks again, friend.

As we say on the Emerald Isle, I wish it so -- "from your mouth -- to God's ears. . ."

Namaste -- and do stop back to check on us from time to time.

Anonymous said...

A small story on Aspen's funding for this deal:

http://mobile.bloomberg.com/news/2013-07-16/aspen-said-to-seek-2-billion-loan-to-fund-merck-nestle-deals.html?cmpid=yhoo