Merck & Co to move HQ as part of cost-savings plan; enters deal with Vaxxas

US pharma giant Merck & Co (NYSE: MRK) is joining a string of drug majors in announcing cost-cutting moves in the face of existing or pending patent exclusivity losses, saying yesterday that it will relocate its headquarters as part of the company's ongoing program to consolidate its global real estate footprint and lower its annual operating expenses, following its $50 billion acquisition of Schering Plough in 2009.

Merck plans to move the company's global headquarters within the state of New Jersey from Whitehouse Station, where it has been since 1992, to its existing property in Summit, which is about 25 miles away and currently houses research, manufacturing, animal health and consumer care operations and is home to 1,800 people. The company will close its current headquarters building in Whitehouse Station.

The transition process is expected to begin in 2014 and be completed in mid-2015, but the company gave no indication of the level of cost savings that might be achieved by this decision. The Summit location was selected as the site for Merck’s new headquarters because it is a strategic, multi-use site with excess work-space capacity and is adjacent to major transportation hubs and desirable urban centers.