HMR damps down merger speculation

11 March 1998 15:02  [Source: ICIS news]

FRANKFURT (CNI)--Hoechst Marion Roussel chief executive Richard Markham on Wednesday brushed off speculation that his company might be involved in a merger or takeover.

All of the major pharmaceutical companies have been the subject of recent rumour, particularly since the mega-merger between SmithKline Beecham and Glaxo Wellcome of the UK collapsed. But Markham said a merger was "not necessary."

He said there were two main reasons why a company might feel the need to merge: that it did not have adequate geographical coverage around the world, or that it did not have a large enough sales base to compete on research and development spend. Neither applied to HMR, he said, which had "one of the strongest marketing and sales networks around the world," and an R&D spend of some DM2.3bn ($1.25bn).

"It is our responsibility to consider all strategic options for the industry," said Markham. "But do we feel under pressure or in a corner because of what others are doing? The answer to that is no."

But Markham hinted at further acquisitions or partnerships, similar to its formation of a functional genomics partnership with Ariad last year and its acquisition of combinatorial chemistry firm Selectide in 1995. "We are consistently evaluating (bio)technology companies in particular to identify what it would be appropriate for us to acquire, or joint venture or partner in some way," he said. "I would be surprised if there were not one or two of those things per year for ever, because the field is moving so fast that it is necessary for us to keep up." HMR was not currently discussing any major deals, however, he added.

By: Grace Williams
+44 208 652 3214

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