Merck KGaA ‘not yet approached’ on generics sale

Following its announcement that it is to officially investigate the possible sale of its generic drugs business, Merck KGaA commented that it has not yet received any formal approach from potential purchasers of the segment.

The company’s generics business encompasses the third-largest generic pharmaceuticals unit in the world, with reported sales of 1.8 billion euros (1.2 million pounds) in 2005,

Merck has expressed a desire that a “qualified” buyer be found for the business unit to provide it with the necessary investment to enhance its presence in the market.

Reports have circulated of an interest from Ranbaxy Laboratories, an Indian pharmaceutical firm, in purchasing Merck’s generic business.

“Ranbaxy had not made a proposal to Merck,” a spokeswoman for Merck told AFX.

“As far as I know, Merck has not yet been approached by any companies.”

The spokeswoman added that, contrary to comments from some analysts, the sale of the generics business was not being considered to finance the company’s recent acquisition of Serono, but instead reflected the company’s desire to focus on branded pharmaceutical and chemical products.

Other groups that are reportedly interested in acquiring Merck Generics include private equity buyers, as well as pharmaceutical firms Novartis and Teva.