The companies already had an agreement with their Vytorin cholesterol treatment, a combination of Schering-Ploughs Zetia and Merck`s generic Zocor. But a study published by the companies in January 2008 showed that the drug combination was no more effective in treating high cholesterol than relatively inexpensive zocor, if taken alone. Schering-Plough is a global, innovative, science-oriented healthcare company. Through its own biopharmaceutical research and collaboration with partners, Schering-Plough develops therapies that help save and improve lives around the world. The company applies its research and development platform to prescription human medicine, animal health and consumer health products. Schering-Ploughs Vision is „Earn Trust, Every Day“ with physicians, patients, clients and other stakeholders served by colleagues around the world. The company is based in Kenilworth, N.J., and its website is www.schering-plough.com. The Funtleyder, a pharmaceutical analyst at Miller Tabak, said Merck-Schering`s merger put the companies on an equal footing with Pfizer, which merged with Wyeth earlier this year. Mega-mergers of this kind have been widely expected since Pfizer launched the consolidation race in January, agreeing to pay $68 billion for Wyeth.
And others will probably follow, because many of the same factors – such as patent expiration and rising development costs – are pushing drug manufacturers into their arms. Another advantage of the merger for the two companies is the strengthening of their global presence, in part due to Schering-Plough`s holdings outside the United States. According to the press release, the merger company is expected to generate more than 50% of its revenue outside the United States. Its increased production capacity will help the company meet the growing demand for biologics and sterile medicines. Merck and Co. (Whitehouse Station, NJ) and Schering-Plough (Kenilworth, NJ) have entered into a definitive merger agreement under which Schering-Plough shareholders will receive $23.61 per share. This amount is approximately 34% higher than Schering-Plough`s closing price on March 6, 2009. According to a press release from the company, the total value of the transaction is approximately $41.1 billion.
For Erik Grebs` blog on fusion, click here. On March 9, 2009, Merck Co., Inc. („Merck“) and Schering-Plough Corporation („Schering-Plough“) announced that a merger agreement had been unanimously approved by each company`s board of directors  and was valued at $41.1 billion.  In addition, the merger of these two pharmaceutical giants is expected to improve efficiency and result in cost savings of approximately $3.5 billion per year.