Merck & Co. keen on small acquisitions

Merck & Co. keen on small acquisitions

Stefan Oschmann, Merck's president for Europe, the Middle East, Africa and Canada, said the U.S. drugmaker was interested in expanding its portfolio with the purchase of biotechnology firms with late-stage products or mid-sized pharmaceutical companies with promising research platforms.

He told a small group of journalists in Geneva that large-scale consolidation was likely not in Merck's interest, especially given that market valuations of companies in the sector are so high.

"Mega mergers have in most cases not delivered what they had promised," Oschmann said. "We don't necessarily think that a mega merger is the right thing."

Merck signed 35 acquisition and partnership deals in 2006. Oschmann said Merck, ranked seventh in the industry for sales last year, is investing heavily in developing an HIV vaccine and sees large promise in its HPV vaccine Gardasil for cervical cancer prevention.