Merck plans to create a spinoff company for its women's health, legacy products and biosimilars so it can tighten its focus on a few key areas, the company said Feb. 5.
The new company will allow Merck to focus on its larger products, such as the cancer drug Keytruda. It plans to reduce the number of human health products it makes and sells by about 50 percent.
The yet-to-be-named company will allow Merck to save $1.5 billion by 2024, the company predicted. It expects the deal to close in the first half of 2021.
Merck will keep its oncology products, vaccines, hospital and animal health products, while its women's health, legacy brands and biosimilars will go to the new company.
Read the full news release here.