New Merck R&D Chief Overhauls Operations & Cuts Are Coming

Two months after arriving at Merck as the new head of R&D, Roger Perlmutter is moving quickly to overhaul the operation, which is known as Merck Research Laboratories (back story). As part of the changes, various senior management roles have been eliminated, including franchise heads and site head, and the licensing unit will now report directly to Perlmutter, who is searching for a new head. "These changes are part of Merck’s existing strategy and ongoing commitment to streamline our operating model and aggressively manage our cost structure," a spokesman writes us. "By doing so, we will ensure that we are able to bring our medicines and vaccines to those who need them today, while enabling us to deliver long-term value to our patients and shareholders." "MRL’s organizational structure has been altered to simplify governance so that Merck (MRK ) can advance therapeutic and vaccine candidates more efficiently and focus resources on its most promising programs. The new design has been established to ensure that MRL leaders have the authority to take appropriate actions to facilitate rapid pipeline progress. It is too early to provide numbers or comment on any individuals that may or may not be affected by these changes." He confirmed that the changes, which were first noted at In The Pipeline, will involve layoffs, but declined to specifcy numbers. As we noted previously, Perlmutter arrived amid ongoing frustration that Merck has not produced more big sellers. Among a...
Source: Pharmalot - Category: Pharma Commentators Authors: Source Type: blogs