P&G Open to Mergers in Consumer Health Care Industry.

Procter & Gamble is open to acquisitions in the consumer health care category, citing its successful purchase of a Merck business unit in 2018. CEO Jon Moeller said the company might be interested in acquisitions to improve growth rate and margin structure. The acquisition of Merck's consumer-health business has been successful, and Moeller believes the future of personal health care will be driven by both organic and opportunistic means, including acquisitions.

Procter & Gamble (P&G) has indicated its openness to acquiring companies in the consumer health care sector, citing its successful 2018 acquisition of a Merck business unit as a precedent. During an earnings call, P&G CEO Jon Moeller stated that the company might be interested in acquisitions to enhance its growth rate and margin structure [1].

The acquisition of Merck's consumer-health business, which included vitamins and decongestants, has been a significant success for P&G. Moeller highlighted that this purchase has "paid out extremely well," and he believes that the future of personal health care will be driven by both organic growth and opportunistic acquisitions [1].

Meanwhile, Merck & Co. has been making strategic moves to bolster its portfolio. The company recently announced the pending acquisition of Verona Pharma, which will augment its portfolio and pipeline [2]. Additionally, Merck is implementing a multiyear optimization initiative to redirect resources towards new growth drivers, further enabling the transformation of its portfolio [2].

Despite these positive developments, Merck faces challenges. The company is slashing $3 billion from its annual spending to brace for off-brand competition to its cancer drug Keytruda. This restructuring will involve cutting administrative, sales, and research jobs, and reducing real estate holdings [3]. The company expects the restructuring to be completed by the end of 2027, before Keytruda's key patents expire and the drug faces US government price cuts [3].

Merck's stock has declined by more than 30% over the last year due to investor concerns about its post-Keytruda future. However, the company has touted Winrevair as a potential blockbuster and highlighted a pipeline of new medicines for various diseases [3]. The company's plan to ease Keytruda's inevitable decline involves persuading patients and physicians to adopt an easier-to-use version of the drug, which is expected to win approval later this year [3].

In summary, while Procter & Gamble is looking to expand its consumer health care business through acquisitions, Merck is navigating challenges related to its key products and restructuring its operations to prepare for future competition.

References:
[1] https://www.bloomberg.com/news/articles/2025-07-29/p-g-open-to-acquisitions-in-consumer-health-care-ceo-says
[2] https://www.merck.com/stories/our-q2-2025-financial-results/
[3] https://www.bloomberg.com/news/articles/2025-07-29/merck-mounts-3-billion-revamp-as-keytruda-price-pressure-looms