Please login to the form below

Not currently logged in
Email:
Password:

Merck & Co agrees S-P purchase

Merck & Co has agreed to buy Schering-Plough for $41.4bn in cash and stock in a deal that will see the former gain access to a bulging pipeline and mid life cycle products not under threat of patent expiry

Merck & Co has agreed to buy Schering-Plough (S-P) for $41.4bn in cash and stock in a deal that will see the former gain access to a bulging pipeline and mid life cycle products not under threat of patent expiry.

Under the terms of the deal S-P shareholders will get $23.61 per share, a 34 per cent premium on the company's closing share price in the week ended March 6, 2009. S-P shareholders will receive 0.5767 shares and $10.50 in cash for each share. The cash segment will be financed through a combination of $9.8bn from existing cash balances and $8.5bn from committed financing which will be provided by investment bank JP Morgan Chase & Co.

Merck & Co CEO Richard T Clarke will lead the combined company which, when the deal closes, will be 68 per cent owned by Merck and 32 per cent owned by S-P. The companies currently collaborate on cholesterol-lowering treatments, Vytorin and Zetia.

Late-stage products at S-P are said to be worth some $6bn in annual sales, the company announced at an analysts meeting in November last year. The most promising product in development is TRA, a treatment aimed at preventing blood clots with fewer side effects than existing drugs. S-P has said that the product could reach the market by 2011.

9th March 2009

Share

COVID-19 Updates and Daily News

Featured jobs

PMHub

Add my company
Bedrock Group

Bedrock Healthcare Communications is a privately owned, award winning communications agency that creates and delivers highly effective, insight driven medical...

Latest intelligence

Kulveer Singh
Surviving cancer: a new era for patients
Now more than ever, a shift in perspective is needed...
Crisis? No problem!
Issues planning & management for pharma spokespeople, by Andrew Smith...
Are patient recruitment and retention rates rising or falling?
First up, the good news. Over the past seven years, clinical trial recruitment rates have been on the rise....

Infographics