Merck said on Feb. 5 that it plans to spin off its women’s-health, biosimilars and older brands into a separate firm. It says the new company, which does not yet have a name, will bring in revenue of approximately $6.5 billion in 2020.
Merck expects to complete the transaction in the first half of 2021. It will receive a special tax-free dividend of $8 billion to $9 billion from the new company, which is expected to have $8.5 billion to $9.5 billion in debt. Merck also forecast cost savings for the core business it is retaining of more than $1.5 billion by 2024 after the spinoff.
Separately, GlaxoSmithKline outlined on Feb. 5 its two-year program to split into a consumer-healthcare company and an innovative pharmaceutical firm.
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Source: CNBC - 🏆 12. / 72 Read more »
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