Merck Names New Management Team For Combined Co.

Merck & Co. (MRK) named the management team that will be in place after the drug maker closes its acquisition of Schering Plough Corp. (SGP), eyeing growth opportunities in emerging markets, biologics and vaccines.

The new Merck will have five primary divisions: Global Human Health; Animal Health; Consumer Health Care; Merck Research Laboratories; and Merck Manufacturing. Each division will report to Merck Chief Executive Richard T. Clark, who was named CEO of the combined company when the deal was signed in March. Animal-health and consumer health care will operate as separate business units, reporting to Clark.

The merger is still subject to antitrust clearance. To satisfy regulators, Merck has agreed to sell its 50% stake in the Merial animal-health joint venture to partner Sanofi-Aventis SA (SNY) for $4 billion.

Global Human Health, the new company's largest division, which will include prescription, vaccines and biologics businesses, will be led by current GHH head Kenneth C. Frazier. It will include a new Emerging Markets group.

Raul E. Kohan, head of Intervet Schering-Plough Animal Health, will lead the new animal-health business, which will have more than 1,000 products and revenue of about $3 billion.

Stanley F. Barshay, Consumer Health Care Chairman at Schering-Plough, will be the interim head of the new Consumer Health Care businesses while the company searches for a permanent leader. The new business will target growth outside the U.S. Schering-Plough's Consumer Health Care business includes allergy medicine Claritin, sun-protection product Coppertone and the Dr. Scholl's foot-care line.

Merck Research Laboratories will be led by Peter S. Kim, currently that division's executive vice president and president.

Merck Manufacturing will be led by that group's current president, Willie A. Deese.

Shareholders of Merck and Schering-Plough voted Aug. 7 in favor of the drug makers' merger, hitting a milestone on the way to the deal's expected closing later this year. Monday, Merck said the deal remains on track to close in the fourth quarter.

Merck, which has been beset by patent expirations and research setbacks, is gaining access to a relatively strong research pipeline through the Schering deal.

In recent premarket trading, Merck shares were at $32.15, down 0.5%. Schering was inactive after closing Friday at $28.02.

-By Mike Barris, Dow Jones Newswires; 212-416-2330; [e-mail]