CORRECTED – UPDATE 1-Adcock, Merck team up to promote drugs in S.Africa

JOHANNESBURG, June 24 (Reuters) – South African drugs maker Adcock Ingram (AIPJ.J) will team up with Merck & Co (MRK.N) to jointly promote each other’s medicines, increasing both companies’ presence in Africa’s biggest economy.

South Africa’s second-biggest generic drugs maker, which scrapped a 2 billion rand ($264 million) takeover bid for rival Cipla Medpro (CMPJ.J) last year, is looking for new ways to better compete with larger rival Aspen Pharmacare (APNJ.J).

Adcock Ingram’s Chief Executive Officer Jonathan Louw said in a statement on Thursday the collaboration “will enhance our diverse portfolio and broaden our pipeline of new products in the market place.”

The companies will jointly promote drugs from various therapeutic areas that include asthma, dermatology, migraine as well as over-the-counter medicines.

Merck, known as MSD outside the U.S. and Canada, said the deal formed part of its long-term strategy to expand in emerging markets. The financial details of the deal were not disclosed. (Reporting by Tiisetso Motsoeneng) ($1 = 7.575 rand)

South African Markets – Factors to watch on June 24

June 24 (Reuters) – The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect South African markets on Thursday.

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EVENTS

PRETORIA – South African Reserve Bank’s quarterly bulletin. 0900 GMT

PRETORIA – Statistics South Africa releases producer inflation data for May. 0930 GMT

PRETORIA – South Africa’s Crop Estimates Committee releases summer crops 5th production forecast.

LUSAKA – Zambia’s Central Statistical Office releases June inflation data. 0830 GMT

GLOBAL MARKETS

Asian stocks firmed on Thursday, lifted by gain in miners on expectations Australia’s government would compromise on a controversial mining tax, while the U.S. dollar eased after the Federal Reserve said the economic recovery was faltering. [MKTS/GLOB]

SOUTH AFRICAN MARKETS

South African stocks fell to an 8-day low on Wednesday on fears a global economic recovery will be slow, and the rand gave up earlier gains on the dollar after inflation data which left the door open for an interest rate cut next month. [.J]

ADCOCK INGRAM AIPJ.J – will team up with Germany’s Merck Group

AVUSA (AVUJ.J) – posted a 38 percent decline in full year headline earnings per share and said it expects benefits from recovering economy. [ID:nWEA7342]

SASOL (SOLJ.J) – said operting profit improved further in the third quarter of its financial year. [ID:nWEA7357]

GOLD XAU=

Gold was flat to slightly firmer on Thursday as the Federal Reserve’s vow to keep interest rates low and uncertainty over the global economy underpinned investor appetite. [GOL/]

WALL STREET

U.S. stocks mostly fell in a volatile session on Wednesday after the Federal Reserve downgraded its assessment of the economic recovery as it vowed to keep cheap money flowing. [.N]

EMERGING MARKETS

For the top emerging markets news, double click on [nTOPEMRG]

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Some of the main stories out of the South African press:

BUSINESS DAY

- Policy confusion threatens food security – Ackerman

- Gordham moots “new thinking” on jobs, growth

- Hotel sector’s low end pulls in World Cup fans

BUSINESS REPORT

- Nxasana to fly SAfrica flag high at G20

THE STAR

- Royal match for Charlene (Reporting by David Dolan)

Merck to Expand Business in South Africa

~ Strategic Collaboration with Leading Local Company Adcock Ingram Announced ~

~ Merck’s Strategy for Growth in Emerging Markets Furthered ~
WHITEHOUSE STATION, N.J.–(Business Wire)–
Merck (Merck is known as MSD outside the United States and Canada) today
announced a strategic collaboration between MSD South Africa and Adcock Ingram,
a publicly held South African company, to co-promote and distribute a number of
established MSD products in South Africa. The products that will be jointly
promoted by MSD and Adcock Ingram include over-the-counter (OTC) products and
selected prescription medicines currently registered in South Africa by MSD and
Schering-Plough. Financial details of the collaboration were not disclosed.

Collaboration Will Drive Growth

“The collaboration announced today is part of Merck’s long-term strategy of
expanding our geographic presence which will position us for leadership in
emerging markets,” said Dr. Stefan Oschmann, president, Emerging Markets, MSD.
“We expect sales from these markets to be a key contributor to our future
performance and growth. As part of our pursuit of that growth we will strive to
expand our presence across emerging markets by actively seeking local
collaborations. This collaboration, with a highly respected local partner, shows
our commitment to invest in South Africa. It also better positions us to address
the serious burden of disease in the country and provide the people and patients
of South Africa with access to affordable, high-quality health care.”

Merck expects that the Emerging Markets will account for more than 25 percent of
its global pharmaceutical and vaccine revenue in 2013 based on the
implementation of the company`s emerging markets strategy. To accomplish this,
the company intends to continue to successfully launch new products, optimize
Merck`s robust in-line portfolio of medicines, vaccines, follow-on biologics and
consumer care products, and fully leverage the market for branded generics with
the company`s portfolio of mature brands as well as targeted business
development.

Jonathan Louw, chief executive officer, Adcock Ingram added, “We are excited
about the collaboration with MSD because it will enhance our diverse portfolio
and broaden our pipeline of new products in the market place. Together, we have
a formidable marketing and distribution capacity backed by an excellent track
record of delivery to all our clients.”

Large Portfolio of Products Part of the Collaboration

MSD entered into a collaboration with Adcock Ingram to co-promote and distribute
products from various therapeutic areas including: asthma, dermatology,
hypercholesterolemia, hypertension, migraine and osteoporosis as well as a
portfolio of over the counter medications.

About Adcock Ingram

Adcock Ingram is a publicly held company with a market capitalization of about
USD $1.1 billion (South African Rand $9 billion) and occupies approximately 10
percent of the South African private pharmaceutical market. The company has two
businesses – pharmaceuticals and hospital products – both of which deliver
essential services to a wide customer base. Pharmaceuticals provide an extensive
range of prescription medicines across a broad range of therapeutic classes in
addition to over-the-counter products and a selective range of personal care
products. Its hospital products business is South Africa’s largest supplier of
hospital and critical-care products, blood systems and accessories as well as
products used for renal dialysis and transplant medication. The company also
supplies established brand name medicines and equipment to medical, research and
pathology laboratories through their scientific group.

About Merck

Today’s Merck is a global healthcare leader working to help the world be well.
Merck is known as MSD outside the United States and Canada. Through our
medicines, vaccines, biologic therapies, and consumer care and animal health
products, we work with customers and operate in more than 140 countries to
deliver innovative health solutions. We also demonstrate our commitment to
increasing access to healthcare through far-reaching programs that donate and
deliver our products to the people who need them. Merck. Be well. For more
information, visit www.merck.com.

Forward-Looking Statement

This news release includes “forward-looking statements” within the meaning of
the safe harbor provisions of the United States Private Securities Litigation
Reform Act of 1995. Such statements may include, but are not limited to,
statements about the benefits of the merger between Merck and Schering-Plough,
including future financial and operating results, the combined company`s plans,
objectives, expectations and intentions and other statements that are not
historical facts. Such statements are based upon the current beliefs and
expectations of Merck`s management and are subject to significant risks and
uncertainties. Actual results may differ from those set forth in the
forward-looking statements.

The following factors, among others, could cause actual results to differ from
those set forth in the forward-looking statements: the possibility that the
expected synergies from the merger of Merck and Schering-Plough will not be
realized, or will not be realized within the expected time period, due to, among
other things, the impact of pharmaceutical industry regulation and health care
legislation; the risk that the businesses will not be integrated successfully;
disruption from the merger making it more difficult to maintain business and
operational relationships; Merck`s ability to accurately predict future market
conditions; dependence on the effectiveness of Merck`s patents and other
protections for innovative products; the risk of new and changing regulation and
health policies in the U.S. and internationally and the exposure to litigation
and/or regulatory actions.

Merck undertakes no obligation to publicly update any forward-looking statement,
whether as a result of new information, future events or otherwise. Additional
factors that could cause results to differ materially from those described in
the forward-looking statements can be found in Merck`s 2009 Annual Report on
Form 10-K and the company`s other filings with the Securities and Exchange
Commission (SEC) available at the SEC`s Internet site (www.sec.gov).

Merck
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Ian McConnell, 908-423-3046
or
Gail Thornton, 908-423-3012
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or
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