NEW YORK: Merck & Co Inc said on Monday it would acquire Schering-Plough Corp for $41.1 billion, uniting the makers of cholesterol drugs Zetia and Vytorin in the second megadeal for big pharma in weeks. The deal between the New Jersey drugmakers comes amid a harsher climate for pharmaceutical companies, as they have failed to produce enough new drugs to replace old ones, and as the new Obama administration prepares healthcare reforms that could pressure drug prices. It also landed the same day that Roche Holding AG moved closer to acquiring the 44 percent of Genentech Inc that Roche does not already own, with a source telling Reuters the two sides are discussing a deal for about $46.7 billion. Schering-Plough’s earnings and share price have deteriorated over the past year due to a plunge in sales of Vytorin and Zetia, its biggest products, even as several of its most promising drugs move into very costly late-stage trials. Merck, which has seen profits and shares battered by Vytorin’s decline and other setbacks, has deeper pockets and would help fund research on Schering-Plough products, including promising blood clot and hepatitis C drugs. "The deal gives Merck more breathing room," said Mehta Partners analyst Viren Mehta, as it girds for patent expirations in 2012 on its $4 billion-a-year Singulair asthma drug and by next year for its Cozaar blood-pressure treatment.
Leave Your Comments