Karl-Ludwig Kley: Merck KGaA May Sell Non-Prescription Drugs Business
Germany's Merck KGaA may sell its non-prescription drugs business, the group's chief executive told the Financial Times, in the latest sign of change at the family-controlled drugs and chemicals maker.
Asked whether he would divest the business, which offers over-the-counter drugs such as vitamin pills and nasal spray, CEO Karl-Ludwig Kley told the paper that he would not rule out options that make economic sense.
"With the current pricing environment, I don't see that we could spend billions to double the business to reach critical mass on a global scale," the CEO was quoted as saying by the Financial Times on Monday.
The Consumer Health Care unit, which posted €346 million of sales in the first nine months of 2010, has long been described by analysts as too small. But the company has repeatedly said it would hold onto the business.
Market participants are pinning their hopes on the group's new finance chief to boost its share price, buffeted by a string of setbacks in drug development.
Merck this month said it hired Matthias Zachert from German specialty chemicals group Lanxess to replace its retiring CFO, receiving instant approval from investors.
Previously, it appointed an executive from U.S. peer Merck & Co to replace the chief of its drugs division.
