(Reuters) - Merck & Co Inc said it would acquire Schering-Plough Corp in $41.1 billion deal, widening Merck’s pipeline and diversifying its portfolio of medicines.
* Price - Schering-Plough shareholders will receive 0.5767 share of Merck and $10.50 in cash for each of their shares, or about $23.61 per share.
* Structure - a reverse merger where Schering-Plough, renamed Merck, will continue as the surviving public company.
* Financing - $9.8 billion in cash, $8.5 billion in debt from J.P. Morgan and $22.8 billion in Merck stock.
* Impact - consummates a deal that has been speculated for years, given the marketing partnerships and cost savings opportunities between the two companies.
* CEO - Merck’s Richard T. Clark
* New board - three from Merck, three from Schering
* Net 2008 sales of Merck - $23.9 billion
* Net 2008 sales of Schering — $18.5 billion
* Top drugs for Merck by 2008 sales:
Singulair for asthma, $4.3 bln
Cozaar/Hyzaar for blood pressure, $3.6 bln
Fosamax for osteoporosis, $1.6 bln
Gardasil, cervical cancer vaccine, $1.4 bln
* Top drugs for Schering by 2008 sales:
Remicade for arthritis, $2.1 bln
Nasonex for intra-nasal allergy, $1.2 bln
Temodar for brain cancer, $1.0 bln
* In 2000, Merck and Schering agreed to jointly develop and market drugs for cholesterol management.
* Sales of the cholesterol drugs, Vytorin and Zetia, have been hurt after trials led to questions on safety and effectiveness.
* Vytorin 2008 sales of $2.4 bln, Zetia sales of $2.2 bln.
* Schering-Plough CEO Fred Hassan says he has not discussed his future with Merck after merger concludes.
* Merck has not discussed rights for arthritis drugs Remicade, Golimumab with Johnson & Johnson.
* Substantial majority of Schering’s employees expected to remain with combined company.
Reporting by Jennifer Robin Raj in Bangalore