Merck, one of the leaders in the global pharmaceutical industry has put in place various measures to ensure high standards of corporate governance. A system of committees helps the Board in discharging its responsibilities. This article deals with Merck's corporate governance practices.
One of the leaders in the global pharmaceutical industry, Merck, was well--known for its high --cholesterol, hypertension, and heart--failure drugs. The company's famous drugs are Cozaar and Hyzaar (blood pressure), Zetia and Zocor (Cholesterol). Vioxx (pain killer), Propecia (male pattern baldness treatment) and Singulair (asthma). Merck also produced vaccines for hepatitis A and B, and chickenpox. Merck had several new products in its pipeline, including a new COX--2 inhibitor (Arcoxia) and vaccine candidates for Human Papilloma Virus (HPV, a known cause of cervical cancer) and herpes zoster (shingles).
These initiatives had become important, as Merck had lost patent protection for its hypertension drug Vasotec, high--cholesterol drug Mevacor, and ulcer drug Pepcid in 2001. Unlike other leading players in the industry, Merck had by and large avoided growth by acquisition. But it had tie--ups with companies like Schering--Plough. In 2003, Merck spun--off its Medco Health Solutions Pharmacy Benefits Management and drug distribution subsidiary, which it had acquired in 1993. In 2002, Merck recorded revenues of $51,790.3 mn and a net income of $7,149.5 mn1. |
