Merck Opens A Behavioral (Largely Non-Pharmaceutical) U.S. Business Sub, In Weight Management

By essentially stealth-acquiring a United States-based leader in weight related behavioral modification solutions, Merck likely contemplates opening its new subsidiary to being a sort of "feeder program" (no pun intended) for emerging pharma related weight management solutions. There are a few out there in early trials, that might also prove to be future Merck targets.

More likely, though, selling into the heart disease management market, and into the diabetis management market, led Merck to choose this vehicle -- to increase direct contact with, and access to, potential future US patients. And I think Merck believes it will be a profitable business, in its own right. After all, the company acquired is itself quite healthy. Here is a link to the press release:

. . . .Merck today announced the launch of a new business focused on providing comprehensive, evidence-based weight management interventions for employers, hospitals, medical groups, health plans and patients. This business is based on providing weight management interventions that combine a structured diet, behavior coaching and monitoring and physical activity to achieve clinically meaningful weight loss that can help reduce the risks of chronic illnesses, such as diabetes and cardiovascular disease.

To bring these interventions to the market more effectively, a new company has been created called HMR Weight Management Services Corporation. . . .

UPDATED: Noon EST | To see the HD version at Vimeo.com, use the password "Merck2013" -- without the quote marks, but with the capital M, No spaces at all, and click here.

But to be clear, this business, on a stand-alone basis is immaterial to Merck, and is likely to turn probably only a third of the margins that the established pharma businesses churn for Whitehouse Station. Good news, just the same. [Ed. Note: HD video (but Blogger's janky converter degraded it to low SD) -- of last night's Messiah -- in a few -- now above.]