Proposed JV to be called Merial-Intervet Paris, France and Whitehouse Station, NJ – July 27, 2010
Paris, France and Whitehouse Station, NJ – July 27, 2010– Sanofi-aventis (EURONEXT: SAN and NYSE: SNY) and Merck & Co., Inc. (NYSE: MRK) announced today that Raul E. Kohan will be appointed Chief Executive Officer of their proposed Animal Health joint venture. Sanofi-aventis and Merck - known as MSD outside the United States and Canada - intend to combine Merial with Intervet/Schering-Plough, to create a new global leader in Animal Health to be called Merial-Intervet.
Mr. Kohan is currently President of Intervet/Schering-Plough, Merck's Animal Health business. He will commence his new responsibilities when the new joint venture is approved by regulatory authorities and closes, which is expected to occur in the first quarter of 2011. The formation of this new animal health joint venture is subject to execution of final agreements, antitrust review in the United States, Europe and other countries, as well as other customary closing conditions.
“Raul Kohan will head this new leader in Animal Health”, said Christopher A. Viehbacher, Chief Executive Officer of sanofi-aventis. “The talents, products and expertise of both companies are very complementary and will create a company with greater geographical and market coverage. As a result, we expect the new Merial-Intervet joint venture to drive significant growth”.
“Raul brings a wealth of animal health and global pharmaceutical industry experience," said Richard T. Clark, Merck Chairman and Chief Executive Officer. “We're pleased that Raul will lead the integration of the two companies while continuing to deliver global growth momentum. The new joint venture will have one of the broadest portfolios of animal health products and services in pharmaceuticals and biologics to meet the needs of millions of customers."
Raul Kohan is Executive Vice President and President, Global Animal Health, Merck. He joined Schering-Plough in 1984 and has since held positions of increasing responsibility. He served as Deputy Head of Animal Health and Senior Vice President, Corporate Excellence and Administrative Services for Schering-Plough Corporation. Previously, Kohan’s responsibilities included overseeing the company's Global Specialty Operations group, which comprised Animal Health and Consumer Health Care for Schering-Plough. Kohan graduated from the General San Martin Military Academy, Argentina, and holds an M.B.A. degree in economics from the University of Buenos Aires.
José Barella, the current Executive Chairman of Merial, will continue his role until the transaction closes. Thus, he will work closely with Mr. Kohan and will contribute significantly to the transition and creation of the new combined Animal Health business. Mr. Barella joined Merial in 2001 and became Chief Operating Officer in 2005 and head of business operations with responsibilities for all commercial activities for Merial globally, including sales and marketing for both the companion animal and production animal businesses, and the commercial functions that support them. He was named Merial's Executive Chairman in 2007 with responsibility for executing global strategy and through his leadership grew the company to be an industry leader.
The new Merial-Intervet joint venture will offer a broader portfolio of animal health products and services in pharmaceuticals and biologics, as well as, the ability to capitalize on growth opportunities in all fields and countries around the world.
The worldwide animal health market reached $19 billion in 2008. Products for companion animals accounted for 40 percent of total sales while products for production animals accounted for the remaining 60 percent of total sales. This market is expected to grow at around 5 percent per year over the next 5 years, driven by a growing demand for animal proteins, as well as a strong consumer needs for companion animal health care.
Merial and Intervet/Schering-Plough will continue to operate independently until the closing of the transaction.
Today's Merck is a global healthcare leader working to help the world be well. Merck is known as MSD outside the United States and Canada. Through our prescription medicines, vaccines, biologic therapies, and consumer care and animal health products, we work with customers and operate in more than 140 countries to deliver innovative health solutions. We also demonstrate our commitment to increasing access to healthcare through far-reaching policies, programs and partnerships. Merck. Be well. For more information, visit www.merck.com.
Sanofi-aventis, a leading global pharmaceutical company, discovers, develops and distributes therapeutic solutions to improve the lives of everyone. Sanofi-aventis is listed in Paris (EURONEXT: SAN) and in New York (NYSE: SNY).
About Intervet/Schering-Plough Animal Health
Intervet/Schering-Plough Animal Health, based in Boxmeer, the Netherlands, is focused on the research, development, manufacturing and marketing of animal health products. The company offers customers one of the broadest, most innovative animal health portfolios, including products to prevent, treat and control disease in all major farm and companion animal species as well as products for reproduction management. Intervet/Schering-Plough Animal Health; subsidiaries of Merck & Co. Inc., Whitehouse Station NJ, USA. For more information, visit www.intervet.com.
Merial is a world-leading, innovation-driven animal health company, providing a comprehensive range of products to enhance the health, well-being and performance of a wide range of animals. Merial employs approximately 5,700 people and operates in more than 150 countries worldwide. Formed in 1997, Merial is a leading animal health company that was a 50/50 joint venture between Merck and sanofi-aventis and is now a wholly-owned subsidiary of sanofi-aventis, after Sanofi-aventis acquired Merck’s interest in Merial for a cash consideration of $4 billion (US) in 2009. For more information, please see www.merial.com.
Forward Looking Statements by Merck
This news release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such statements may include, but are not limited to, statements about the benefits of the merger between Merck and Schering-Plough, including future financial and operating results, the combined company’s plans, objectives, expectations and intentions and other statements that are not historical facts. Such statements are based upon the current beliefs and expectations of Merck’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements.
The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: the possibility that the expected synergies from the merger of Merck and Schering-Plough will not be realized, or will not be realized within the expected time period, due to, among other things, the impact of pharmaceutical industry regulation and pending legislation that could affect the pharmaceutical industry; the risk that the businesses will not be integrated successfully; disruption from the merger making it more difficult to maintain business and operational relationships; Merck’s ability to accurately predict future market conditions; dependence on the effectiveness of Merck’s patents and other protections for innovative products; the risk of new and changing regulation and health policies in the U.S. and internationally and the exposure to litigation and/or regulatory actions.
Merck undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in Merck’s 2009 Annual Report on Form 10-K and the company’s other filings with the Securities and Exchange Commission (SEC) available at the SEC’s Internet site (www.sec.gov).
Forward Looking Statements by sanofi-aventis
This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements are statements that are not historical facts. These statements include projections and estimates and their underlying assumptions, statements regarding plans, objectives, intentions and expectations with respect to future financial results, events, operations, services, product development and potential, and statements regarding future performance. Forward-looking statements are generally identified by the words “expects,” “anticipates,” “believes,” “intends,” “estimates,” “plans” and similar expressions. Although sanofi-aventis’ management believes that the expectations reflected in such forward-looking statements are reasonable, investors are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of sanofi-aventis, that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include among other things, the uncertainties inherent in research and development, future clinical data and analysis, including post marketing, decisions by regulatory authorities, such as the FDA or the EMA, regarding whether and when to approve any drug, device or biological application that may be filed for any such product candidates as well as their decisions regarding labelling and other matters that could affect the availability or commercial potential of such products candidates, the absence of guarantee that the products candidates if approved will be commercially successful, the future approval and commercial success of therapeutic alternatives, the Group’s ability to benefit from external growth opportunities as well as those discussed or identified in the public filings with the SEC and the AMF made by sanofi-aventis, including those listed under “Risk Factors” and “Cautionary Statement Regarding Forward-Looking Statements” in sanofi-aventis’ annual report on Form 20-F for the year ended December 31, 2009. Other than as required by applicable
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