Merck will buy Schering-Plough for $41.1 Bn USD

By Xavier Tello

Richard Clark

Photo: Merck

Merck (or Merck Sharp & Dohme) will buy Schering- Plough for $41.1Bn USD in cash and stock, according to Bloomberg and Reuters.

Despite the speculations during the weekend that J&J could be a stronger bidder, and Merck’s traditional position of never being part of a super-merger, Merck will become the 2nd largest US Pharma Company if the deal is closed.

With this transaction, Merck will reinforce its pipeline with a $6Bn USD a-year sales promissory in-development portfolio, including possible veddette compound “TRA” for clotting prevention, that won’t be available for commercialization until 2011; a promised tough year for “Big Pharma” when, ie Pfizer’s patent of  Lipitor®  will be lost.

According to Merck’s CEO Richard Clark, they were looking after a good acquisition deal after failing to win regulatory approval for Cordaptive® and Gardasil® sales started declining.

Schering-Plough’s stock skyrocketed to near 15% after the news was spread, getting into $20.7 a share; nevertheless it is expected that the bid could become more attractive during the next days.

This will be the second super-merger announced in just two weeks, after Pfizer decided to close a deal with Wyeth.

Apparently this news ignites big rumors for Companies like BMS and AstraZeneca who wouldn’t want stay out of the super-merger tendency… if any.

UPDATE: Get a copy of the Merck & Schering-Plough Merger Investor Presentation HERE



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One Response to Merck will buy Schering-Plough for $41.1 Bn USD

  1. Rodrigo says:

    Excelente artículo, felicidades.

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