Merck KGaA announces launch of Merck Serono

Merck KGaA has this week announced the launch of Merck Serono. This announcement follows the successful closure of the share purchase agreement and passing of resolutions by Serono.

The integration process of the companies has begun, while the top management team of the new company has been appointed, while the production of Erbitux, an oncology pharmaceutical, will be consolidated in Switzerland.

During 2007, Merck Serono will be merged with the existing Merck Ethicals business unit and will operate under the Merck Serono name as part of the pharmaceutical division of Merck KGaA.

Elmar Schnee has been appointed chief executive officer of the company, with Olaf Klinger chosen as chief financial officer and Francois Naef as chief administrative officer.

Elmar Schnee, chief executive officer of Merck Serono, said: “With the combined innovative power of two strong companies, we have the unique opportunity to create a superb union of pharmaceutical chemistry and biotechnology.”

He added that the aim was to best use the abilities of both companies, who between them have 28 products currently in clinical development, with a combined research and development budget in the region of one billion euros (671 million pounds).

Merck KGaA also announced that following this acquisition, it is launching a public tender offer of the sum of Merck Serono bearer shares in a free float to Merck Serono shareholders.