
Merck says sale of Oss facility would be too expensive
pharmafile | March 8, 2011 | News story | Manufacturing and Production, Research and Development |Â Â Holland, Merck & Co, Oss, Oss pharma research, Pantarhei BioscienceÂ
The debate around the closure of Merck & Co’s R&D and manufacturing unit in Oss, the Netherlands, rumbles on, with the drugmaker forced to explain its decision not to sell the plant in a Dutch court.
At a hearing late last week, Merck said that selling the unit would cost around $700 million more than simply closing it down, and would be a much more complex transaction, according to local news reports.
In 2010, Merck announced the closure of R&D and one production line at the Oss site – along with several other R&D and manufacturing facilities around the world – as part of a cost-cutting exercise prompted by its merger with Schering-Plough a year earlier. Schering-Plough itself acquired the unit when it took over Organon in 2007.
The closure decision spelled the end of more than 2,000 jobs at Oss, and was met with consternation by the local workforce and Dutch politicians. What followed was months of demonstrations and threatened industrial action, and eventually the company agreed to explore other options, including a possible sale of the Oss unit and another R&D unit in Schaijk.
Last month, Dutch biotechnology company Pantarhei Bioscience said it was interested in making an offer for all the women’s health operations at Oss – including R&D, toxicology, production and most of the currently marketed products in this category. Other companies said to be in talks with Merck included Japan’s Takeda and South Africa’s Aspen Pharmacare.
Merck rejected the rescue plan on February 16, saying that it had not been able to find a viable alternative to closure, although it has since suggested it may be able to retain a small R&D unit.
The court hearing had been convened as part of an ongoing attempt by the workers council and supervisory board to force Merck to try harder to find a buyer. In their case, the plaintiffs had argued that Merck should not be able to make the decision not to pursue a sale unilaterally.
The court said it would deliver its verdict in the case on 11 March.
Phil Taylor
Related Content

MSD gets CHMP positive opinion for keytruda to treat advanced lung cancer
MSD (Merck & Co) said its anti-programmed death-1 (PD-1) therapy, Keytruda (pembrolizumab) to treat lung …

Merck & Co says Keytruda shows better results than chemotherapy in Phase III trials for lung cancer
US drug major Merck & Co (NYSE: MRK) said late-stage trials for its immunotherapy Keytruda …

Merck & Co agrees to buy biotech firm Afferent for upfront $500 million in cash
US drugmaker Merck & Co (NYSE: MRK) said it has agreed to buy biotech firm …






