Merck to Buy Schering-Plough in Latest Pharma Merger

Drug giant's purchase comes weeks after Pfizer-Wyeth merger
By Jason Farago,  Newser Staff
Posted Mar 9, 2009 6:34 AM CDT
The Schering-Plough headquarters in Kenilworth, NJ. Merck said today it would acquire Schering-Plough in a $41.1 billion cash-and-stock deal.   (AP Photo/Mel Evans)
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(Newser) – Merck announced today that it will merge with fellow drugmaker Schering-Plough in a $41.1 billion cash-and-stock deal to enlarge its pipeline of new drugs in development, reports the Wall Street Journal. The two companies have already collaborated on cholesterol drug Zetia—whose sales plummeted after a study questioned its effectiveness. The merger comes 6 weeks after rival Pfizer announced its acquisition of Wyeth.

The deal will see Schering-Plough shareholders acquire just over half a Merck share plus $10.50 in cash for each share they own. That works out to a 34% premium on Friday's closing price of Schering-Plough.