Bayer’s Revenue Synergy for Merck Products: Dekkers

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May 6 (Bloomberg) -- Bloomberg’s Cristina Alesci breaks down Bayer’s purchase of Merck’s consumer unit in a $14.2 billion deal on Bloomberg Television’s “Market Makers.”

Merck has a stronger u.s. position, stronger than bayer.

Bayer has a strong position across the globe and in emerging markets and in europe.

Our intention is to take the merck brands and bring them to other geographies and create a lot of revenue synergy.

With more on this merck bayer acquisition of bayermerck's consumer unit, cristina alesci.

Bayer being aggressive, trying to reshape the industry.

Or reacting to everything going on.

Here's the thing, you start with merck.

What pharma companies in the u.s. are dealing with is the fact that they have to reconfigure their whole model.

They have to survive in a post-blockbuster world with a long horizon on the development front.

From merck's standpoint, you can do a big transformative deal we sell pfizer do or dump what you are not good at, focus what you are good at, that is what i was geared up for the beginning of the year.

These kinds of deals.

Companies are shedding non core assets and doubling down on what they think is a promising way to go.

Like what we saw a couple weeks ago with glaxo at novartis.


Merck will get $8 billion to $10 billion of proceeds, some of it might go to r&d, it will mostly be used to buy promising medications and hepatitis b or cancer.

They can charge an extreme amount of money for specialized products, that will be the future of the company.

Do you get a sense that that will continue to be the way the industry is going?

Or are we going to see more shakeout.

Another vision that maybe reflects the kind of thing we saw before, the megamergers.

Like what we might see happen with pfizer and astrazeneca.

I think you will see -- i want to focus on merck.

I think we will see more on this.

A retooling of the business.

Increasingly specialized pharma companies.

From 2013 to 2018, pharma companies, the 13th largest in the u.s. and europe will lose about $15 billion in sales over patent laws.

The cliff.

This is what a striving this activity.

They want to get out of the lower margin businesses.

Even merck has said that it's older pipeline, it is going to shed.

We will see merck and possibly sanofi shed drugs that are not producing margins.

But it does not solve the patent cliff problem.

Whatever pattern cliffs merck is facing become someone else's problem.

These drugs are still, the older drugs, they are still spouting off a bunch of cash.

If you are just interested in the cash and not in innovating the next big drug, you are all right with the cash.

You can basically run it off and take the benefit of it.

Is part of the problem that biopharmaceutical companies that could provide -- too expensive.

Too expensive.

We have seen such a run-up in biotech stocks.

That could be an additional source of activity but it will take some time.

All the people in the market have analyzed it as you have, big pharma companies are not developing blockbuster drugs so they have to go to biotech stocks, that has led to a run-up in biotech stocks, putting a damper on the activity.

We could see a reversal.

A self filling prophecy,

This text has been automatically generated. It may not be 100% accurate.


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