Tomahawk, WI 10/25/2013 (BasicsMedia) – Merck & Co., Inc. (NYSE:MRK) has embarked on a period of restructuring, and from the looks of it thus far, appears to be doing quite well. This company, which enjoys market share of $135.26 billion, and operates in the health care sector, has been forced to undertake these restructuring measures primarily due to the volatility of the industry. It hopes that these activities will help it to save close to $2.5 billion, which it can then reinvest in other equally important areas thus boosting its financial performances for the fiscal year. I believe that these actions are justified.

MRK To Focus More on Drug Development

MRK is laying a lot of emphasis on drug development, perhaps more than it has ever done in the past. MRK says it intends to focus and invest more on its research division. The key areas it intends to focus on through its restructuring measures include vaccines, diabetes, oncology and acute care. MRK intends to continue with its policy of acquisitions across the health care, while not giving up on acquiring new licenses from other companies. It hopes that this will help it to add new drugs into its inventory and this measure will boost its revenues going forward.

MRK To Proceed with Job Cuts Globally

If there is a single part of MRK’s restructuring programs that have caused a lot of excitement, it is its decision to carry out job cuts across all its divisions. The job cuts affect its global operations, and will be carried out in batches. It had already embarked on this process by announcing that it was removing 7,500 employees from its roster. It has now announced that it will fire another group of 8,500 workers across its global operations. MRK believes that these measures are justified in order to cut down on costs and improve its profitability.

MRK believes that these restructuring programs will help it save $2.5 billion by the fall of 2015. However, there is a strong belief that as early as end of 2014, MRK will start seeing the fruits o these programs by saving not less than $1 billion. They may seem painful measures to take, especially where it intends to remain with only 80% of its current employees across the world, but investors love to read about such actions. MRK is in business to make people improve their health, but this does not mean that it has to disappoint its investors while pleasing employees.

Wall Street analysts are reporting that MRK is in a much better position financially, and their rating of this stock has improved considerably as well. Investors are now encouraged to buy MRK, and this has boosted this stock significantly. The future looks quite good for MRK and I know that this global brand in the health care sector will see its financial results improving substantially going forward. Its application for licensing from the U.S Food and Drug Administration has started bearing fruits and this will increase its market share in the industry.

I support the restructuring measures being undertaken by MRK, and believe that they are justified in order for Merck to remain relevant in a volatile industry.

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