Bracco finalizes buy-back from Merck

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The Italian government finalized an agreement that allows Bracco to buy back the 50% of its of stock held by Merck. In the same agreement, Bracco will sell its laboratory business to Merck. The clearance completes contrast media company Bracco’s

The Italian government finalized an agreement that allows Bracco to buy back the 50% of its of stock held by Merck. In the same agreement, Bracco will sell its laboratory business to Merck. The clearance completes contrast media company Bracco’s buy-back from Merck, and positions the company to expand its business, said Diana Bracco, president and CEO of the Bracco Group.

Pharmaceutical firms Merck of Germany and Bracco of Italy have been partners for 70 years. Merck supplied Bracco with key chemicals used in the production of x-ray contrast media. In the time leading up to the sale, the companies debated whether to split the international imaging business from Bracco. The companies believe the split would make the businesses more efficient and allow them to better compete with other firms in the market (SCAN 4/7/99).

The buy-back allows Bracco to set up a new division at its U.S. headquarters in Princeton, NJ. Bracco Devices Division will promote and market the group’s products for medical devices. The first product to be promoted and marketed by BDD in the U.S is Acist, a contrast media injector for cardioangiography. This product will be sold exclusively in the U.S. Dr. Alberto Chierici will head the Bracco Devices Division.

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