Merck & Co. said Monday it will cut about 7,000 jobs, or 11 percent of its work force, and will close or sell five of its 31 manufacturing plants by the end of 2008 in the first phase of a reorganization strategy meant save up to $4 billion by the end of the decade.
The restructuring announcement comes as Merck faces the loss of patent protection for its blockbuster cholesterol drug Zocor next June, plus thousands of lawsuits and billions in potential liability from its recalled painkiller Vioxx. With expected Zocor sales of $4.2 billion to $4.5 billion in 2005, Merck expects sales to drop to $2.3 billion to $2.6 billion in 2006 because of competition from generic drug makers.
