Merck Blinks Over Plant Closings In The Netherlands

1 Comment

organon-protestAfter a summer filled with demonstrations and threats from employees to stage walkouts, Merck has decided to postpon the planned closure of some of its operations in the Netherlands while talks are held with on potential alternatives, including a sale of the R&D site, Reuters reports. The last-minute deal avoids a court hearing scheduled fo today at which employees hoped to block the closures.

The downsizing, which involved closing three sites employing more than 2,100 people, was actually part of the large layoffs planned by Merck after purchasing Schering-Plough, which had previously acquired Organon (see this). Last month, Organon employees announced that, every day at noon, five workers at the R&D facility in Oss would leave their desks and labs, and walk to Oss town hall to complain. The widely publicized action was expected to continue for months. The Oss plant makes ingredients for the Saphris antipsychotic.

For now, Merck has agreed to negotiate alternatives, including a possible sale. “A lot of options are being considered. We are looking at every serious option that presents itself,” a Merck spokeswoman tells Reuters. “There have been approaches of interest…We have heard some names, but we cannot comment on that; but there has not been really serious talks because that was not yet possible.” However, if no deal is reached by Dec. 31, both sides go back to their corners and resume battle.

Jump to comments

Share

Comments

  1. Great stuff, Ed — puts me in mind of a John Lennon and the Plastic Ono Band ditty, of nearly a half century ago.

    It also makes the rumors of a German Merck (via a private equity bridge) combination of these assets, with German Merck’s womens health businesses look much more credible. That rumor was making the rounds at the end of last week. Here’s to hoping for an intact sale.

    It still baffles me that Merck so completely bungled this situation (could it be a legacy Schering-Plough hangover?). . . I dunno.

    Namaste

Leave a Comment


six + 6 =

Subscribe

RSS Feed

Comments feed for this post only.

Clear

Clear

All rights reserved, UBM Canon. Copyright, UBM Canon.

Thanks for trying out the new Pharmalot printing tools. If you're got any suggestions for how we can help you print better, please let us know by clicking on the contact link at http://www.pharmalot.com/