Merck is considering the sale or strategic partnership of its consumer health business, including India as it continues to focus on developing innovative drugs.
The plan to hive off consumer health business is the second such move by the drug maker which sold its biosimilar business to Fresenius earlier this year.
The German drug maker Merck KGaA operates in 66 countries and its business is spread across pharmaceuticals, laboratory solutions, chemicals and liquid crystals. In 2016, the company had global sales of over 15 billion Euros. Consumer health contributed to 850 million Euros.
Merck which has been present in India for over five decades operates through five main companies, including its listed entity Merck Limited.
Merck did not respond to an email query and did not share the most recent consumer health sales figures for India. Merck Ltd 2015 annual report shows the business contributed to over Rs 200 crore or around 24 per cent of its Rs 904-crore sales (the company follows January-December calendar).
The segment includes brands vitamin B tablets Neurobion Forte (which in 2015 became the first Rs 100 crore brand for the firm), health supplement Seven Seas, oral electrolyte Electrobion and cold medicine Nasivion.
In the recent years, the company has also ramped up its investment and focus on drugs to treat cancer and infertility. These include drugs like Erbitux and Gonal sold through an unlisted firm which contributed to around Rs 100 crore in sales last year, according to company filings with registrar of companies. The company also plans to introduce some novel therapies in the domestic market.
The company stock on BSE gained 2.39 per cent to close at Rs 1235.40 on Wednesday.
"Over the last couple of years, we have invested around 10 million Euros to develop capabilities in India and expect to continue investing at that level over the next couple of years as well. India continues to be one of the growth drivers of our emerging market strategy which has been very successful in the last five years," Merck Healthcare CEO Belen Garijo said in an interview with Forbes last December.