Merck & Co., Inc. Signals Interest In Medical Devices

The new chief executive of Merck & Co. Inc. on Friday told a group of analysts he may consider expanding into medical devices and diagnostics as a way to revive the company's fortunes. Merck CEO Richard Clark mapped out options for the company in the private meeting. JP Morgan analyst Chris Shibutani, who attended the meeting, said Clark stressed that change needs to come, but "change is not synonymous with cutting costs." "Longer-term, we heard for the first time of the potential for how Merck could even envision itself as a company with businesses beyond pure pharma (pharmaceuticals), to include devices (implantable) and diagnostics as well," Shibutani said in a research note. Merck spokeswoman Amy Rose confirmed the meeting took place, adding that the drugmaker is examining its options but that "no decisions have been made."