Merck KGaA Reorganizes Pharmaceutical Business in Japan
Merck KGaA announced the reorganization of its Pharmaceuticals business in Japan. As of April 2006, the Ethicals division of Merck Ltd. and the Japanese generic pharmaceuticals subsidiary Merck Hoei Ltd. will be combined to form the new company Merck Pharma Ltd.
The aim of this combination is to strengthen Merck's presence in Japan, the world's second-largest pharmaceutical market, and to exploit synergies from the previously separate organizations. Merck Pharma Ltd. will be headquartered in Tokyo.
Merck Hoei Ltd., founded as Hoei Pharmaceutical in 1950, has been a Merck subsidiary since 1998 and since that time a platform for the Merck generics business in Japan. Synergies with Merck Pharma Ltd. are expected in administrative functions. The former President of Merck Hoei Ltd., Katsuhiko Asano, resigned from the position on October 31. Klaus Diehl was appointed as Representative Director, Chairman and President of Merck Pharma Ltd. Diehl is Representative Director and President of Merck Ltd. He will hold both positions concurrently.
Merck Ltd., which generated sales of EUR 394 million in 2004, will now be able to focus exclusively on the business activities of the three Chemicals divisions of Merck KGaA, particularly the development, production and marketing of liquid crystals and pigments.
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