Merck 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.

“The collaboration announced 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 per cent 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.”

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.

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.