Merck quickly consoled the failure of the OPA on Schering, who preferred Bayer last spring. The chemical and pharmaceutical group German yesterday announced the acquisition of the Swiss Serono, first European Laboratory of biotechnology, for EUR 10.6 billion. This is a surprise. Ernesto Bertarelli, boss and owner of Serono, had made clear in April that he was seeking a buyer. He had previously studied the offers of potential purchasers, but negotiations had not been successful.
Coup de theatre yesterday. The Bertarelli family agreed to cede the 64.5 of the capital it holds, representing 75.5 per cent of the voting rights. Merck will then launch a takeover bid on the balance of the capital at the same price, Swiss francs 1,100 per share, a premium of 20 over the course of Serono on the eve of the announcement. Taking a radical turn in its century-old history, the Geneva laboratory will disappear as an independent entity, and will be integrated in the pharmaceutical division of Merck. The new set will be based in Geneva, but Ernesto Bertarelli has made clear that he would leave the group term. "I will take a little time to decide what I will do after," said heir - manager of forty years, winner of the America's Cup in 2003. He did not say what he would do his huge cheque: "It's personal."
Merck agrees to pay a high price: 23 times the profits the Swiss 2005. "A level of recovery almost unhoped-for for Serono", commenting on the CM - CIC Securities analysts. The German group is thus the hand on the number three or four world of biotechnology, a sector dominated overwhelmingly by American laboratories. The flagship of Serono is a treatment of multiple sclerosis, the Rebif. It represents more than half of its sales. Merck will also inherit a presence in the United States, which he was absent.
Critical size
Meanwhile, Merck markets in Europe the cancer drug Erbitux, which is also derived from biotechnology. It could be produced in the factories of Serono, say Morgan Stanley analysts, while Merck must now outsource manufacturing to German Boehringer Ingelheim. The acquisition will allow to expand its product portfolio development, badly recently with the failure of treatment for Parkinson's disease in clinical trials. German Merck with no longer linked to the Merck & Co. American, hopes to achieve the "critical size" R & d, with a budget combined close to EUR 1 billion per year. "A size necessary to be competitive on the world market of Pharmacy", according to Michael Roemer, President of the German laboratory.
Serono, Merck will reinforce its activity of prescription drugs under patent, which represent 47 of its turnover, but will remain diverse. This group, whose origins date back to the 17th century, manufactures generic drugs, over-the-counter treatments and chemicals. It is also the number one global LCD flat screen televisions and computers.
Merck action fell by 4.49 yesterday in Frankfurt. Beyond the price of the transaction, some analysts are worried about the risk posed by the integration of Serono. The Swiss is highly dependent on the Rebif, which will be soon competed by a new drug in the United States. Product development portfolio is considered "anemic" Jérôme Berton, analyst at Aurel Leven.
Asia is therefore an environment preferredBut I think that concern also affects the United StatesBouygues is today the same level as at the beginning of the yearThe time has certainly come flat to our systems of compulsoryLatter already enjoys the support of the German Liberal MEPsRemains unknown the Orange strategy in TVThis concentration on a few key players appears to be completedThe speed must take precedence over perfectionThe book of Philippe Escande is not of themSome houses have made errors in management
