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Merck and Schering-Plough in $41 Billion Merger
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by Jordan Yerman | March 9, 2009 at 06:57 am
549 views | 13 Recommendations | 7 comments
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Pharmaceutical giant Merck, known for its Gardasil product, is acquiring Schering-Plough in a $41 billion dollar merger. The overall goal is to compete more closely with Pfizer, which is the largetst pharma company in the world. The deal is a reverse merger, in which a private company buys a public company, which in effect takes the private company public without all the extra paperwork and vetting.
Both parties expect to close by the end of the year. The move could trigger other mergers in a sort of pharma merger "arms race" in terms of consolidating development and lobbying resources.
The combined company will take the Merck name, and Merck Chief Executive Richard Clark will take the reins.
According to the agreement, Schering-Plough shareholders will receive 0.5767 share of Merck and $10.50 in cash for each Schering-Plough share. Merck stock holders will automatically have their shares converted into shares of the combined company.
The companies already had an agreement with their cholesterol treatment Vytorin, a combination of Schering-Plough's Zetia and Merck's generic drug Zocor. But a study released by the companies in January 2008 showed that the combination drug was no more effective in treating high cholesterol than the relatively low-cost Zocor, when taken alone.
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Most RecentMost Recommended Comments (7)
at 09:25 on March 9th, 2009
A lot of work goes into pulling off a voluntary recall. Most of the time it's a 'do you resign or do we fire you' type of situation.
Big Pharma just keeps getting bigger. With deals like this one, it may be time to beef up the regulatory provisions of the FDA, and in Canada, the Health Protection Branch. People really need pharmaceutical companies to be held accountable for their products, and the bigger they get, the more difficult that becomes.
The industry has one of the most powerful lobbies in the world and governments pay attention when Big Pharma speaks.
at 12:01 on April 20th, 2009
Really interesting post. Have there been anymore updates on this since march?
at 22:29 on May 5th, 2009
Could you update me with detail
at 06:19 on May 31st, 2009
The partnership is really promising. But I hope that the vaccines that they create wouldn't be like Gardasil, who have hurt and claimed some people's lives. Hope that this advent would transpire, just like what it promises.
at 21:41 on June 3rd, 2009
I do not believe pharmaceutical companies have any weight with the FDA. IND - Investigational New Drug requirements are the same for pharmaceutical companies (big or small). All IND submissions have to go through the stringent requirements of the FDA.
at 11:50 on June 19th, 2009
Well folks, I would like to be updated on this case. Mike at the regcure guide