Merck establishes joint venture with Supera Farma

Merck (NYSE:MRK), known as MSD outside the United States and Canada, today announced the formation of a new joint venture (JV) with Supera Farma Laboratorios S.A., a Brazilian pharmaceutical company co-owned by Cristália and Eurofarma. The new JV will market, distribute and sell a portfolio of innovative pharmaceutical and branded generic products from Merck, Cristália and Eurofarma solely in the Brazilian retail sector.

“Merck is pleased to partner with two of Brazil’s leading pharmaceutical companies — organizations that share our commitment to enhancing health care for the people of Brazil,” said Kenneth C. Frazier, chairman and chief executive officer, Merck. “This venture is an important step forward in our strategy to grow our business in key markets and improve global access to our medicines and vaccines.”

By establishing the JV with Supera, Merck will gain additional local expertise, an expanded portfolio of products and a strong distribution network to facilitate wider access to medicines for the people of Brazil. The initial portfolio of the JV will include approximately 30 products across a range of therapeutic areas. The JV will have its own dedicated sales force separate from Merck, Cristália and Europharma, but will leverage the parent companies’ infrastructures for activities such as sales force training. The parent companies will continue to maintain separate businesses in Brazil.

Ogari Pacheco, president of Cristália, commented, “This joint venture is a combination of Cristaliá’s creativity, Eurofarma’s commercial efficiency and Merck’s innovation.”

Maurizio Billi, president of Eurofarma added, “We are sharing learnings and combining the very best of each company, making this joint venture more competitive in the Brazilian market. Partnering with Merck is a strategic move to advance access to innovative pharmaceutical products.”

Merck, through a subsidiary, will own 51 percent of the JV, and Cristália and Eurofarma will collectively own 49. The venture will be managed by a joint board and leadership team consisting of members of senior management from the three companies. Establishment of the JV is subject to satisfying certain agreed upon closing conditions but is scheduled to be completed later in 2012.