Merck Details Plans to Restructure Merck Frosst as Part of a Global
Initiative to Integrate Worldwide Operations, Following the Merger of Merck
and Schering-Plough

Company Commits to Investing C$100 million in R&D in Québec Over the Next Five Years

KIRKLAND, QC, July 8 /CNW Telbec/ - Merck & Co., Inc., Whitehouse Station, NJ, U.S., announced today plans to phase out the Merck Frosst Centre for Therapeutic Research, located at the head office of its Canadian subsidiary in Kirkland, Québec, by the end of 2010.

This announcement is part of a broader communication which details the latest phase of Merck's global merger restructuring program and follows a comprehensive review of its global research and global manufacturing facilities. The restructuring of both the global research and manufacturing networks is a key component of Merck's strategy. Manufacturing and packaging operations at Merck's Pointe-Claire facility will continue to support the North America region.

"The difficult decision to phase out the research facility in Kirkland represents one part of the company's ongoing consolidation of its operations and research activities," said Rich Tillyer, senior vice president, Discovery and Preclinical Sciences, Merck Research Laboratories. "It does not detract from the important contributions made historically by research scientists at this site."

The merger of Merck and Schering-Plough in 2009 prompted a review of all research and manufacturing facilities of the company across the world. In designing the new network, Merck evaluated its global resources and capabilities and focused on how to best organize research to efficiently and successfully deliver on its objectives. This involves creating an agile, flexible and efficient network focusing on fewer, larger discovery sites to support multiple franchises, enabling cross functional interaction, resource flexibility and improved agility.

There are currently 180 people employed at the Merck Frosst Centre for Therapeutic Research. Some Merck Frosst employees will be offered new positions within Merck's global research network. Those employees not offered employment at another Merck site will receive a fair and competitive severance package as well as support with career transition and job search. The company is committed to treating employees with dignity and respect.

"Merck remains committed to maintaining a strong presence in the life sciences and innovation sector in Québec and Canada, and will continue to invest in academic, biotechnology and clinical research collaborations to supplement and advance its internal research programs," said Carlos Dourado, president of Merck in Canada. As part of this commitment, Merck announced that over the next five years it will invest an additional

C$100 million in research and development collaborations with Québec-based companies and academic institutions. The company expects to begin making these investments in 2010.

The company also is leveraging its C$32 million investment in the Pointe-Claire facility made last year that expanded packaging capabilities at the plant. Nearly 350 employees work at the Pointe-Claire facility which manufactures and packages consumer, pharmaceutical and animal health products.

About Merck

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 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 programs that donate and deliver our products to the people who need them. Merck. Be well. For more information, visit

Merck Forward-Looking Statement

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; the impact of pharmaceutical industry regulation and health care legislation; 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 (


For further information: For further information: Media Contact: Vincent Lamoureux, Merck, T. 514-428-3591,

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