Rumor 2: If -- As Second Anon. Commenter Suggests -- It Is Assets Only; No People Or Plants. . .

To be clear -- this too is mere anonymous conjecture.

However, if nothing but the IP portfolio (brands, word-marks and trademarks/ licenses and product-line know how and patented methods/compositions of matter rights) are being sold, then I'll still say that 3.2 times sales (net of Merck's then-internal INCREASED restructuring charges -- see next paragraph) is a pretty fair guess. Who knows how it will shake out?

As is typical in such "IP strip out" transactions -- if Merck doesn't transfer the bulk of the Consumer Heatlh people in the deal, Merck will be on the hook for perhaps another billion dollars in severance, facility/plant closings and restructuring expenses. Those will need to be deducted from the price the IP only buyer is paying -- If announced at the Q2 earnings call.

Personally, I think part of the Merck goal in the purported Consumer Health sale will be to transfer some facilities, some people [and off-load some associated debt]. If it goes as an IP strip, we won't know for quite a few quarters what the net cash figure was to New Merck. We will have to see the size of the additional restructuring charges. As ever, then -- we shall see. Here's the latest comment:

. . . .Anonymous said. . .

. . .Popular thinking is that Canan was told he would not be CFO that sent him to the exit. He was a lifer at Merck and I cannot imagine he'd be happy one step from the pinnacle of finance. I worked as one of his directs for several years about 10 years ago. He would have made a great CFO.

[Editorial Redaction: The EVP and Chief Strategy Officer] was hired to essentially install the China presence. This was back when we had more than PD-1 in waiting. No surprise at all that he left/was let go considering the new strategy will be licensing deals.

The Consumer sale will be public before the end of 2Q, very likely by tax day. This money is to feed the PD-1 piggy. Last I heard the assets alone are being bought - the staff will not transition to the buyer, at least not a majority. One potential buyer is likely not to take manufacturing assets, either. . . .

March 30, 2014 at 10:31 AM. . . .

Thank you so much! Truly. To be clear -- I personally expect Merck will transfer most of the people, and a good bit of the related hard asset-base, in any such deal. But I could be mistaken. Now -- sit tight! -- we wait and see.