• by bcarlson@marketresearch.com
  • May 13 2014


Bayer Merck OTC Transaction: "A Good Deal for Both"

Bayer Merck OTC Transaction: "A Good Deal for Both"

Consolidation in the pharma industry continues as Merck & Co.  sold its over-the-counter products division, for which Bayer AG agreed to pay $14.2 billion.   Our analyst Melissa Elder, author of Kalorama Information’s Top 25 Pharmaceuticals Report weighs in.

"On the Bayer-Merck OTC transaction, I believe its a good move for both.  Bayer is a leader in the OTC market and this will continue to strengthen the company’s position in the segment.  Bayer generates nearly 20% of its sales from consumer health so it’s really playing into the company’s strong side.   For Merck, it’s moving out of an area that hasn’t been as strong for the company.  This allows Merck to focus on it’s strong segments, prescription pharma and vaccines.  The company is also more involved in its animal health division than its consumer care division...so in all, I think a smart move."  - Melissa Elder, analyst for Kalorama Information