Merck Is Ready To Announce Restructuring Plan
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The chief executive of Merck, Richard Clark, said a statement would come “soon” on a restructuring plan he’s worked on since taking the job in May, and he wouldn’t comment on a report it will include thousands of job cuts.
Mr. Clark, in a telephone interview yesterday, declined to comment on a November 26 report in the Wall Street Journal that Merck will cut jobs, close plants, and trim research costs. He said he was “very unhappy” with the story and wouldn’t discuss it as “a matter of principle.”
“The problem with an article like that is that we haven’t had time to talk to employees,” Mr. Clark said. “We’re very unhappy. We want to tell our employees first.”
“The announcement will be soon,” he added. Merck, the no. 3 American drugmaker, faces billions of dollars in liability from 6,400 lawsuits filed against the company over its recalled Vioxx painkiller. The Whitehouse Station, N.J.-based company is also preparing for sales declines from its Zocor cholesterol drug, which loses patent protection next year, and Fosamax osteoporosis treatment, off patent in 2008.