Merck & Co.'s (MRK) top executive said Tuesday the drug maker might consider lining up an outside partner to invest in the consumer-health operations Merck will inherit with its planned purchase of Schering-Plough Corp. (SGP).

"Certainly there will have to be an investment in the consumer business," Merck Chief Executive Richard Clark told analysts on a conference call after reporting second-quarter earnings, adding that the drug maker is now considering whether "we do it alone or can we do it with a partner?" He added in an interview it was too early to say in which direction Merck was leaning.

Schering-Plough's consumer business - which sells Claritin allergy medicine, Dr. Scholl's foot-care products and Coppertone sunscreen - generated about $1.3 billion in sales last year, or roughly 3% of combined sales for the two companies.

Though it will be a small part of the post-merger Merck, Clark said the consumer unit will be a "very important part of our business moving forward from a diversification standpoint, particularly in emerging markets."

But Merck's primary strengths are in prescription drugs and vaccines, not over-the-counter health products. That has led to some speculation that Merck may consider forming a consumer-products joint venture with a company that has more experience in consumer products.

Clark didn't discuss who might be a potential partner for the Schering consumer-health operations. Other drug makers with consumer units include GlaxoSmithKline PLC (GSK), Johnson & Johnson (JNJ) and Wyeth (WYE). Wyeth has agreed to be acquired by Pfizer Inc. (PFE).

Merck agreed to acquire Schering-Plough in March in a cash-and-stock deal then valued at about $41 billion. The deal is expected to close by the end of the year, subject to approval by shareholders of both companies and government antitrust regulators.

-Peter Loftus; Dow Jones Newswires; 215-656-8289; peter.loftus@dowjones.com