available until November 10, 2009
Merck and Schering-Plough to Merge
Merck and Schering-Plough announced that the two companies will combine in a stock and cash transaction, valued at approximately $41.1 billion, creating a strong, global healthcare leader.
The combined company will be uniquely positioned to continue to grow by discovering, developing and delivering innovative treatments for patients around the world. The efficiencies gained through this transaction will allow for continued investment in strategic opportunities, while creating meaningful value for shareholders of both companies.
The transaction creates a combined company with:
The Best and Brightest People in the Industry
- Like Merck, Schering-Plough has a rich history in breakthrough science, and the employees of both Merck and Schering-Plough are well recognized for pursuing exciting new therapeutic compounds.
- This transaction brings together some of the most talented people in the industry to significantly advance Merck’s efforts in the discovery and development of important therapies for patients.
Complementary Product Portfolios and Pipelines Focused on Key Therapeutic Areas
- The two companies have complementary commercial products and pipelines and a shared focus on important therapeutic areas, including cardiovascular, respiratory, oncology, neuroscience, infectious disease, immunology and women’s health.
- The transaction will double the number of potential medicines Merck has in Phase III development, bringing the total to 18.
Robust R&D to Deliver Innovative Medicines for Patients
- With bolstered R&D expertise and scientific leadership, Merck will continue to be at the forefront of drug discovery and development.
Expanded Global Presence in Key Emerging Markets
- The combined entity will have an industry-leading team of marketing and sales professionals.
- With a more geographically diverse mix of business, the combined company is expected to generate more than 50 percent of its revenue outside the United States.
Financial Strength
- The combined company will have a strong balance sheet with robust free cash flow.
- Merck’s Board of Directors is committed to maintaining the dividend at the current level following the closing of the transaction and will continue Merck’s share repurchase program.
- Merck expects to achieve substantial cost savings of approximately $3.5 billion annually beyond 2011. These cost savings are in addition to the previously announced ongoing cost reduction initiatives at both companies.
- The substantial cost savings expected to be achieved through this combination will be allocated to the best investment opportunities, including pipeline candidates with the greatest probability of success, as well as licensing opportunities.
- By optimizing its investments, the combined company will maximize the benefits of strategic growth initiatives and R&D efforts to solidify its position at the forefront of innovation.
For all of these reasons – people, pipeline, product portfolio, global competitiveness, cost structure, financial strength – we believe that this is a truly unique and compelling combination.