Merck, Schering-Plough to merge

Merck (NYSE:MRK) and Schering-Plough (NYSE:SGP) will merge in a cash and stock deal valuing Schering-Plough at $41.1 billion, or $23.61 per share, which is a 34% premium to the company's close of $17.63 on Friday, the last trading day before the deal was announced. Merck shareholders will own 68% of the combined company, with Schering-Plough shareholders owning 32%. The combined company will retain Merck's name and headquarters in Whitehouse Station, N.J. Merck's Richard Clark will remain president, chairman and CEO of the combined company.

The merged company's marketed drugs will include Merck's asthma drug Singulair montelukast and Schering-Plough's autoimmune drug Remicade infliximab. The company also will have 18 compounds in Phase III testing. The companies also already co-market cholesterol drugs Zetia ezetimibe and Vytorin ezetimibe/simvastatin. ...