Recently, Merck (MRK) and Schering-Plough (SGP) received approval from the US Federal Trade Commission (FTC), the Swiss Competition Commission and the Canadian Competition Bureau for their proposed merger. However, the transaction has yet to receive approval from other regulators, including China and Mexico. The deal was approved by the European Union antitrust regulators last week. Shareholders of both the companies have already approved the deal in August. Merck expects to close the proposed merger by year end. The FTC approval has come with the condition that both companies will sell some assets. As a result, Schering-Plough has agreed to sell its rolapitant drug, meant to be used for the treatment for nausea and vomiting in chemotherapy patients to Opko Health Inc. In addition, Merck agreed to sell its interest in Merial Ltd, an animal health joint venture, to its French partner, Sanofi-Aventis ...

Recently, the European Union (EU) approved the proposed $41.1 billion merger between Schering-Plough (SGP) and Merck & Co. (MRK). The deal is awaiting approval from the U.S. Federal Trade Commission. The transaction is expected to close in the fourth quarter of this year. While approving the merger, the EU clarified that the tie-up will not hinder effective competition significantly in Europe, even though both participants in the merger operate in the field of prescription pharmaceuticals. While checking for overlaps in Europe, particularly in the fields of asthma and allergic rhinitis, the European body did not find the products to be close competitors. Consequently, the merger would not be considered to hog the market and choke other companies. As a reminder, Merck filed for EU approval last month after the completion of the sale of its 50% interest in animal health company Merial Limited (Merial) to ...

The existing alliance between Merck (MRK) and Belgian biotech company Galapagos over metabolic diseases was recently expanded to develop new therapies for atherosclerosis, or hardening of arteries due to cholesterol build-up.

Following the deal, Galapagos will be eligible to receive potential milestone payments exceeding €400 million (approx $597 million). Additionally, the company will receive royalties on commercialization of the products.

Merck and Galapagos entered into a diabetes and obesity drug alliance in January this year. Galapagos was eligible to receive an upfront payment of €1.5 million (approx $2.23 million) and potential milestone payments totaling €170 million (approx $253 million).

Earlier, in October last year, Merck decided to terminate its late-stage obesity drug taranabant after determining that the drug was effective in high doses, which in turn triggered side effects.

Merck entered into another deal with Galapagos in April 2009, under which Galapagos will be using its Silence Select target discovery platform to

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Recently, Schering-Plough Corporation (SGP) and Opko Health Inc. (OPK) entered into a deal which would enable Opko to acquire the assets of Schering's neurokinin-1 (NK-1) receptor antagonist program. The companies did not disclose the terms of the agreement. NK-1 receptors are mostly found in the brain.  However, they are also found in other tissues of the body. Their activation causes a release of neurotransmitters and other signaling molecules that play a key role in controlling nausea and vomiting amongst other functions.  The U.S. market for nausea and vomiting drugs is estimated to be in excess of $2 billion. Rolapitant, Schering's lead neurokinin, recently completed mid-stage studies for the prevention of nausea and vomiting due to cancer chemotherapy, surgery and other indications. The company has initiated early-stage studies for another compound in the same class.  As a result of Schering’s $41.1 billion merger agreement with ...

Abbott Laboratories (NYSE: ABT) recently announced that the company will purchase the pharmaceutical arm of Belgium’s Solvay Group for $6.5 billion. This deal expands both the company’s product range and the company’s presence in fast-growing emerging countries, helping defer the effect of patent expiries and compensate for sluggish growth in its traditional markets, such as the United States.

We also have the recent $442 million paid by Johnson & Johnson (NYSE: JNJ) for 18% of Crucell ADR (NASDAQ: CRXL). This will give Johnson & Johnson the development rights on a flu vaccine designed to protect against all future strains of the virus. This deal confirms the company’s move into vaccines, alongside drugs and consumer products.

These deals are further confirmation of the consolidation trend that is occurring right now in the global pharmaceutical industry.

One major factor driving the consolidation trend is the slowdown in sales of pharmaceuticals, particularly in the United

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Yesterday, Schering-Plough Corp. (SGP) and Johnson & Johnson (JNJ) announced the approval of their drug Simponi (golimumab) in the European Union for the treatment of rheumatoid arthritis and other immune system disorders. The drug was approved by the U.S. Food and Drug Administration (FDA) in April 2009.   As a reminder, Schering acquired co-development rights to Simponi in the third quarter of 2005 from Johnson & Johnson’s biotech arm, Centocor Inc., which had developed and discovered the drug. Johnson & Johnson enjoys exclusive marketing rights of Simponi in the U.S., while Schering-Plough holds marketing rights outside the U.S.  excluding Japan, Indonesia and Taiwan where the drug will be co-marketed with other vendors subsequent to regulatory approvals.   Simponi, a next-generation, fully human, anti-tumor necrosis factor (TNF), received European approval as a once-a-month treatment for rheumatoid arthritis (RA), psoriatic arthritis (PA) and ankylosing spondylitis (AS), which is a ...

Yesterday, Merck & Co. (MRK) announced that it is seeking approval from the European Union (EU) for its $41.1 billion acquisition of Schering-Plough Corp. (SGP). The regulatory authorities in the EU are expected to pass a verdict on the matter by Oct. 23. Merck filed for approval of the merger in the EU after the completion of the sale of its 50% interest in animal health company Merial Limited (Merial) to Sanofi-Aventis (SNY) for a cash consideration of $4 billion ( US ). As a reminder, Merial was founded in 1997. It was a 50/50 joint venture between Merck and Sanofi-Aventis and is now a wholly owned subsidiary of the latter. In 2008, Merial was ranked third in the animal health market, with a market share estimated at 13.8% and sales of $2.7 billion just behind Schering’s animal health business, which registered sales ...

With the merger of Merck (MRK) and Schering-Plough (SGP) scheduled to be completed by the fourth quarter this year, Merck is busy with the necessary groundwork. Yesterday, the company announced the new management structure post merger. The current chairman, president and CEO of Merck, Richard T. Clark, will continue to head the combined company. The merged entity will comprise five main divisions -- Global Human Health, Animal Health, Consumer Healthcare, Research and Manufacturing. Global Human Health, the combined company’s largest segment, will be headed by Kenneth Frazier, who is currently heading that division of Merck. This division will include prescription drugs, biologics and vaccines along with an emerging-markets group. Both the Research and Manufacturing segments will be headed by the respective current heads at Merck. The Animal Health and Consumer Health businesses will be headed by executives from Schering-Plough. In the merged entity, about ...

Yesterday, Schering-Plough Corp. (SGP) revealed that the European Medicines Agency (EMA) will review its candidate for maintenance treatment of asthma in patients 12 years and above and an oral contraceptive for marketing in Europe. While the fixed-dose combination of mometasone furoate and formoterol fumarate for the maintenance treatment of asthma in patients 12 years and above is currently under review by the U.S. Food and Drug Administration (FDA), the filing for FDA approval of the contraceptive is expected in 2010. The oral contraceptive is a combination of a natural estrogen (which is identical to the estrogen produced by a woman's body) and a selective progestin. The drug was licensed from Merck KGaA. Schering is seeking marketing approval in Europe for the combination to prevent pregnancy. The approval of the combination of mometasone furoate and formoterol fumarate would further consolidate the company’s respiratory portfolio. Asthma, ...

For Immediate Release

Chicago, IL – August 13, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Schering-Plough Corp. (SGP), Caraco Pharmaceutical Laboratories Ltd. (CPD), Dr. Reddy's Laboratories Inc. (RDY), GeoPharma Inc. (GORX) and Mylan Pharmaceuticals Inc. (MYL).

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Here are highlights from Wednesday’s Analyst Blog:

Schering-Plough Settles Lawsuits

Yesterday, Schering-Plough Corp. (SGP) said it has signed an agreement with Orchid Chemicals & Pharmaceuticals Ltd. and Orgenus Pharma Inc., which sought to make generic versions of its allergy drug Clarinex.

This signals the end of all pending

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