Merck, is a major player in the global pharmaceutical industry. At present, Merck is going through turbulent times due to lack of discoveries, exhausting patented-products and dwindling share prices. This article focuses on the crises Merck is facing and the tentative strategies lying before Merck to get back on track.
A leading player in the global pharmaceutical industry, Merck was well-known for its drugs used in treatment of high cholesterol, hypertension, and heart disease. The company's famous drugs included Cozaar and Hyzaar (blood pressure), Zetia and Zocor (Cholesterol). Vioxx (Arthritis pain killer), Propecia (male pattern baldness treatment) and Singulair (asthma). Merck also produced vaccines for hepatitis A and B, and chickenpox. Merck had several new products in its pipeline, including a new COX-2 inhibitor (Arcoxia) and vaccine candidates for human papillomavirus (HPV, a known cause of cervical cancer) and herpes zoster (shingles). These initiatives had become important as Merck had lost patent protection for its hypertension drug Vasotec, high-cholesterol drug Mevacor, and ulcer drug Pepcid in 2001.
As 2004 drew to a close, Merck faced major concerns. Under CEO Gilmartin, who had for nearly a decade been running Merck, not many new drugs had been developed. Most of the 19 drugs that Merck introduced during Gilmartin's reign seemed to be a result of research that had begun under former CEO Roy Vagelos. Merck's top seller, Zocor, would lose US patent protection in mid-2006. Zocor represented about 18% ($5 bn), of Merck's annual sales. Almost all of that was expected to disappear during the first year of patent expiration. None of Merck's coming drugs were likely to replace those revenues. |
