Merck Mulls Over Its Business Options
Merck & Co., Inc. (NYSE:MRK) is mulling over its options as it continues to strategize about how best to separate its consumer and animal health businesses. Regardless of what path the company decides to take, the company is expected to complete action towards separation of the two units by the end of 2014, Reuters reports.
The company is trying to “determine the most value-creating option for each” but, “could reach different decisions about the two businesses,” Merck said in a statement released early Monday ahead of an investor conference the same day. The statement leaves much to speculation about which business might get the ax, or be sold in favor of beefing up resources for the other.
As previously reported, Merck has been entertaining the idea of trading its over-the-counter products unit for Novartis AG‘s (NYSE:NVS) animal health and human vaccines business. The trade could potentially be an earnings boost for both companies, but there’s been some hesitancy since comparing the value and relative attraction of the two units has proved difficult.