09.03.2010

Sanofi-Aventis and Merck & Co. will combine their veterinary medicine units to create the world’s largest animal-health business with combined sales of more than $5 billion and 14,000 employees.
Sanofi exercised an option to join its Merial business with Merck’s Intervet unit to create the venture, which will be equally owned, the companies. The option was part of an agreement last year when Whitehouse Station, New Jersey-based Merck sold half of Merial to Sanofi for $4 billion.
The new company will surpass Pfizer Inc.’s veterinary unit as the largest in the industry, based on 2008 revenue.
The deal is expected to close in the next 9 months to 12 months and may require the sale of some products.
Sales of animal drugs and vaccines generated $19 billion in worldwide sales in 2008 and are expected to increase 5 percent annually through 2014.