Merck KGaA buys Theramex

Merck KGaA says its French subsidiary intends to acquire Theramex, aprivately-owned pharmaceutical firm based in Monaco. The latter is the French market leader in the field of gynecology and sexual hormone products, according to Merck, and has "a strong R&D pipeline and the potential for above-average growth in the European and global pharmaceutical markets." The deal should close by the end of November 1999 and no financial details were disclosed.

The deal forms part of Merck's strategy of building its business by small acquisitions. The company's head of investor relations, Christian Raabe, told a meeting in Paris, France, recently that the notion of "big is beautiful" in the pharmaceutical industry does not preclude the possibility for success of well-managed mid-sized firms and that Merck would look to the areas it knows well. However, Dr Raabe told the Marketletter at the Paris meeting that it would also be a mistake to focus too much on the European market, given the government health care restraints in that continent, and noted that Merck will be looking to expand in the USA, though more likely in terms of licensing agreements and product acquistions.