Merck KGaA confirms generics sale; launches Merck Serono

Merck KGaK is planning to sell its Merck Generic drug division to a potential buyer. Private equity firms are expected to buy Merck Generics. The company is expected to raise &euro4 billion ($5.3 billion) from the sale of the generic drug division. The division has a strong business with significant leadership and better growth prospects for the future and it will need continued investment to realize its potential and strengthen its market presence. It had reported operating profits of 10%, which amounted to &euro238 million and increased sales of 11%, amounting to &euro1.8 billion in 2005. The company has also acquired Serono and renamed it as Merck Serono whose headquarters will be located at Geneva. Merck KGaK holds 84% of the capital and 89% of voting rights in the new company. The company expects to spend more than &euro13 billion in the entire acquisition.