Merck to Spin Off Medco Health
Merck (MRK) has told securities regulators it will spin off Medco Health Solutions, its wholly owned pharmacy benefits management unit.
The pharmaceutical company had planned last year to offer shares of Medco through an initial public offering, but will now instead spin off the unit to Merck shareholders. Medco will borrow $1.5 billion from Merck as part of the spinoff. The proceeds from the borrowing will be paid to Merck as part of a dividend from Medco.
Merck expects to complete the spinoff in the third quarter. Medco had sales of $33 billion last year.
Medco's planned IPO was
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