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To achieve its spending goals, Merck has been forced to cut deeply in parts of the company outside of its research-and-development laboratories. Mr. Frazier has vowed to protect the labs, which he sees as the lifeblood of the company, from the level of cuts that rivals like Pfizer Inc. are undertaking.
Merck plans to spend about the same on R&D in 2011 as it did last year, when it spent $8.1 billion, excluding special charges. Its 2011 R&D spending target is $8 billion to $8.3 billion.
Yet even Mr. Frazier's commitment to R&D hasn't spared it from a review of costs. The company has been paring back some drug-development programs, including a partnership with Portola Pharmaceuticals Inc. developing a promising blood thinner to replace the popular but difficult-to-use warfarin.
Merck plans to spend about the same on R&D in 2011 as it did last year, when it spent $8.1 billion, excluding special charges. Its 2011 R&D spending target is $8 billion to $8.3 billion.
Yet even Mr. Frazier's commitment to R&D hasn't spared it from a review of costs. The company has been paring back some drug-development programs, including a partnership with Portola Pharmaceuticals Inc. developing a promising blood thinner to replace the popular but difficult-to-use warfarin.