Market Overview

Merck, Sanofi Exploring Potential End To Joint Venture In Europe

Share:

Bloomberg reported after Monday's market close that Merck & Co., Inc. (NYSE: MRK) and Sanofi SA (ADR) (NYSE: 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.

Posted-In: Bloomberg Drug Maker Stocks Drug Makers Gardasil Sanofi Pasteur MSD VaccinesNews Global

 

Related Articles (MRK + SNY)

View Comments and Join the Discussion!
Fastest Market News Application
You'll Hear It First On Pro
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Benzinga's Volume Movers

IBM Expands Its Watson Ecosystem In India