Merck Sharp and Dohme outlines new business strategy

Merck Sharp and Dohme has briefed shareholders on its new strategic initiative to sharpen its commercial and research and development focus, which is expected to deliver growth over the coming years.

The company confirmed this week that it will be selling its consumer care division to Bayer for $14.2 billion (8.37 billion pounds) after a review of the business that began in January 2014. Its animal health unit, which was also under review, will be retained and augmented.

Merck's new focus will be on innovative drug candidates with meaningful, differentiated attributes in key therapeutic areas, including diabetes, acute hospital care, vaccines and oncology. The firm intends to become the world's premier research-intensive biopharmaceutical company.

It also anticipates several regulatory actions and potential product launches in 2014, including the debuts of Grastek and Ragwitek, while filings for sugammadex and odanacatib are expected.

Kenneth Frazier, chairman and chief executive officer at Merck Sharp and Dohme, said: "By bringing to market new products that make a meaningful difference to patients, payers and providers, we'll continue to drive value for our shareholders and society."

The firm generated $10.3 billion in sales during the first quarter of 2014, with annual revenue expected to be between $42.4 billion and $43.2 billion.