Filed under: Company News, Mergers & Acquisitions, Consumer Goods, Drug Companies, Healthcare Industry
By DAVID McHUGHand GEIR MOULSON
FRANKFURT, Germany -- Germany's Bayer plans to buy U.S. drug company Merck's (MRK) non-prescription medicine and consumer care business for $14.2 billion, gaining products such as Claritin allergy pills, Coppertone sun lotion and Dr. Scholl's footcare products.
Bayer CEO Marijn Dekkers said Tuesday that the proposed deal "marks a major milestone on our path towards global leadership in the attractive non-prescription medicines business."
Bayer AG said the combined business would be headquartered at Bayer's site in Whippany, New Jersey. Merck's consumer business has about 2,250 employees and is based in New Jersey.
Merck & Co. is headquartered in Whitehouse Station, New Jersey, and is different from Germany drug company Merck KGaA.
Bayer said it also has entered an agreement with Merck to cooperate on developing and selling drugs known as sGC modulators, which have potential for treating heart failure and pulmonary hypertension. Merck would initially paying Bayer $1 billion under the and further payments contingent on sales.