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Merck-Medco to Become Separate, Publicly Traded Company
Merck-Medco ranks as one of the most successful providers of high quality, affordable pharmacy care in the United States. It serves 65 million Americans and, in 2001, managed more than 537 million prescriptions through its retail pharmacy network and 13 home delivery pharmacies, and managed nearly $30 billion in drug spending.
In 2001, Merck management and the Merck Board conducted a strategic review of Merck and Merck-Medco’s businesses and decided to establish Merck-Medco as a separate, publicly traded company. The Company plans an initial public offering of a portion of the new company by mid-2002, subject to market conditions.
“Merck’s acquisition of Merck-Medco in 1993 has been highly successful,” said Merck Chairman Raymond Gilmartin. “It is also clear that Merck-Medco is a much different company than it was nine years ago,” he said. “Given the evolution of the distinct and highly competitive environments in which Merck and Merck-Medco operate, we believe the best way to enhance the success of both businesses going forward is to enable each one to pursue its unique and focused strategy.”
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Intense focus on customer satisfaction
Merck-Medco serves about 1,700 clients, including more than 150 of the Fortune 500 companies, and the largest federal employees program. Merck-Medco has long been dedicated to customer service. The company develops and delivers innovations such as Generics First, a unique program introduced in 2000 to promote the benefits of generic drugs to physicians. To date, more than 600,000 generic drug samples representing more than 4 million days of therapy have been dispensed through the Generics First program.
This year, the company unveiled the Merck-Medco Client Web site to provide greater control, flexibility and efficiency to clients. The Web site is another example of Merck-Medco innovation and commitment to customer satisfaction.
“As a separate company, Merck-Medco will continue to provide high-quality service to its customers and will be able to pursue new pharmacy benefits management (PBM) opportunities,” said Richard Clark, Merck-Medco president. “We have experienced and talented management and employees, and, as a result, are well-positioned to continue our leadership in the PBM industry.” |
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