Merck, Sanofi Exploring Potential End To Joint Venture In Europe

Bloomberg reported after Monday's market close that Merck & Co., Inc. MRK and Sanofi SA (ADR) SNY may discontinue a 20-year long joint venture to sell vaccines in Europe. The joint venture, named Sanofi Pasteur MSD, represents a 50/50 ownership stake between the two companies and recorded total sales of around $330 million in the first six months of last year. The companies jointly sale flu vaccines and shots against shingles and the cervical cancer vaccine Gardasil. Bloomberg, citing "people familiar with the situation," reported that the companies may end their relationship due to declining sales Sanofi's plans to reorganize its operations. In fact, sales have grown in only one of the past seven quarters, the report added. Shares of Merck were trading lower by 0.93 percent at $50.28 shortly after Tuesday's opening bell, while shares of Sanofi were lower by 1.83 percent at $40.88.