Completing major deal while driving in reverse by ProQuest


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									Merck merger reshaping industry landscape                                                                                                                       Completing major deal
                                                                                                                                                                while driving in reverse
$41.1B deal may create a big                    tions as a result of the merger, but announced       crash has closed the initial public offering
                                                that a hiring freeze has been put into effect        route to capital formation. Hart said her                  An issue in the $41.1 billion merger is a joint
player, but analysts caution of
                                                immediately at both companies.                       members “are shelving programs, some have                  venture between Johnson & Johnson and
short-term pain through layoffs                      Merck has its headquarters in the White-        done layoffs and they are looking at any way               Schering-Plough to market the drug Remi-
                                                house Station section of Readington; Schering-       they can save money.”                                      cade, which would be invalidated by a change
            BY BETH FITZGERALD                  Plough is based in Kenilworth.                            But she said it’s possible that the creation          in control at Schering-Plough.
NEW JERSEY pharmaceutical titans Merck and           The announcement comes less than two            of giant pharma companies will create more                       But the companies insist there is no
Schering-Plough announced a $41.1 billion months after Pfizer revealed a $68 billion deal            opportunities for small biotechs to do collabo-            change in control, because the deal is a
cash and stock merger last                                          for Madison-based Wyeth.         rations with the biggest players.                          “reverse merger” — Schering-Plough will be
week that they said will deliv-                                          Debbie Hart, presi-              The merger is likely to result in layoffs in          the surviving corporate entity, and will then
er a strong pipeline of new
                                    “It ensures that                dent of BioNJ, the associa-      New Jersey from the headquarters staffs of the             change its name to Merck.
drugs, high single-digit earn- Merck will be one of tion of the state’s biotech-                     two companies, said James Hughes, a Rutgers                      Officials of Merck and Schering-Plough
ings growth and $3.5 billion a                                      nology firms, said she’s         University economist.                                      downplayed the Remicade issue during a
year in cost cutting.           the big players, and concerned the mergers will                           This will create short-term pain, but in the          conference call last week.
     Fred Hassan, chief exec-
                                 hopefully be strong result in layoffs.                              long run, “it ensures that Merck will be one of                  “I think that there is very good respect
utive at Schering-Plough, said                                           “We’re wondering who’s      the big players, and hopefully be strong enough            among the thr
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