Merck & Co. Inc. unveiled plans Wednesday to spin off products from its women’s health and biosimilars businesses, along with certain legacy brands, into a new independent and publicly traded company.
Going forward, Merck (NYSE: MRK) will focus on its oncology, vaccines, hospital medicine and animal health segments.
Merck expects the spinoff to be completed by the first half of 2021. The pharmaceutical giant anticipates cost savings of more than $1.5 billion — primarily in areas such as manufacturing and sales staff costs — by 2024. In addition, Merck said by continuing to increase investments in its key growth drivers and pipeline assets, it is targeting operating margins to grow to more than 40% in 2024.
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