Drugmaker Merck closing 8 plants, 8 research sites

WHITEHOUSE STATION, NEW JERSEY: Drugmaker Merck & Co. said Thursday it is shutting down eight manufacturing plants and eight research sites around the world, including two US locations, in the latest phase in its strategic pruning of operations.

The moves, which include consolidating some offices, are part of ongoing consolidation following Merck's acquisition of Schering-Plough Corp. last November.

That deal made Merck the world's second-biggest drugmaker but the company said it would eliminate about 15 percent of the combined work force, or roughly 16,000 jobs.

Those cuts are intended to save the Whitehouse Station, New Jersey, company about $3.5 billion a year.

Merck said the consolidation is part of its strategy to diversify, focus on patient needs and invest in biologic drugs, emerging markets and other key areas for future growth.

``Today's announcement is another important step as we successfully integrate out global operations on schedule and move forward with Merck's strategic priorities,'' Chief Executive Richard Clark said in a statement.

Over the next two years, the company will phase out operations at eight research sites, including one in Massachusetts.

And beginning in the second half of this year, Merck will phase out operations at eight manufacturing plants, transferring production to other factories.

In morning trading, Merck shares rose 35 cents to $35.78.