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