Merck released details of the new structure it will implement after completing its merger with Schering-Plough. The new Merck will have five primary divisions: Global Human Health; Animal Health; Consumer Health Care; Merck Research Laboratories; and Merck Manufacturing. Each division and global support function leader will be a member of the new Merck Executive Committee and will report directly to chief executive officer Richard T. Clark.

Kenneth C. Frazier, currently executive vice president and president of Global Human Health (GHH), will lead the new GHH organization. This group will include the prescription, vaccines and biologics businesses. A new Emerging Markets group will be part of the GHH organization, focusing on regions and markets around the world that represent significant new growth opportunities, including China, Asia Pacific, Latin America, and Middle East/Africa/Eastern Europe, which includes Russia and Turkey.

Raul E. Kohan, currently senior vice president and president of Intervet Schering-Plough Animal Health, will lead the new Merck’s Animal Health business. Schering-Plough’s Animal Health business has more than 1,000 marketed products and generates approximately $3 billion in revenues from business operations in more than 140 countries, according to a company statement.

Stanley F. Barshay, currently chairman of Consumer Health Care at Schering-Plough, will lead that business unit for the new Merck on an interim basis while the company searches for a permanent leader. Merck plans toincrease emphasis on its consumer business, particularly in markets outside the U.S.

Peter S. Kim, Ph.D., will lead the Merck Research Laboratories (MRL) unit. Dr. Kim is currently executive vice president and president of MRL, which will have a new structure.

A new central franchise structure focused on portfolio management will be aligned with the company’s Global Human Health division. A Worldwide Licensing group will continue to look for outside opportunities. According to a company statement, MRL will instill “greater accountability at all stages of the R&D process through two core functions: 1) discovery and pre-clinical development, and, 2) clinical development and regulatory affairs.”

MRL will have three new areas of dedicated focus — emerging markets, vaccines and biologics — to build on the significant investment that both Merck and Schering-Plough have made in this area.

Four members of Schering-Plough Research Institute (SPRI) will hold leadership positions in the new MRL in senior preclinical, clinical and licensing roles. Most of the basic research heads for SPRI’s research sites will remain in their roles following the merger.

Willie A. Deese, currently executive vice president and president of Merck Manufacturing division (MMD), will continue to lead that division. MMD will include new units for consumer health and animal health, and expanded technological capabilities for vaccines and biologics.

Several other appointments to the executive committee were named: Mirian Graddick-Weir, executive vice president, Human Resources; Peter N. Kellogg, executive vice president and chief financial officer; Bruce N. Kuhlik, executive vice president and general counsel; and J. Chris Scalet, executive vice president, Global Services and chief information officer.

Richard S. Bowles III, Ph.D., currently senior vice president of Global Quality Operations at Schering-Plough, will serve as chief compliance officer at the new Merck.

Mr. Clark remarked, “Today’s announcement is an important step in establishing the new Merck as the leading global health care company — one that will make a difference in the lives of patients around the world. The combined company will draw upon the expertise of the people of both Schering-Plough and Merck. Collectively, the new leadership team has decades of industry experience and proven management track records. To complement our joint talent, we will be adding leaders from outside the two companies with specific experience in key areas. I am confident that the new Merck will have the right team in place to be able to deliver on the promise of this strong combination with Schering-Plough.”

Read our profiles of Merck and Schering-Plough in this year’s Top Companies Report!