Merck KGaA to rationalize operations in Switzerland

German drug major Merck KGaA (MRK: DE) has announced efficiency measures it plans to take related to Merck Serono’s operations in Switzerland – acquired with its acquisition of Swiss biotech firm Serono for 10.6 billion euros ($14 billion at current exchange rates) in 2007 - as part of the comprehensive transformation program announced by the company in February. Merck says its transformation program is focused on addressing unprecedented market shifts, increasing competition in key product areas and existing inefficiencies in its own organization.

“The planned measures for Merck Serono’s operations in Switzerland are needed to ensure our global competitive position in a rapidly changing market and to secure the long-term future of the company,” said Stefan Oschmann, executive board member of Merck and responsible for the Merck Serono division. “Regrettably, these planned measures include the closure of our headquarters in Geneva, which would result in workforce reductions and the redeployment of certain Switzerland-based functions to other Merck locations.”

Merck Serono headquarters to be consolidated in Germany; R&D to be transferred