Does this deal make sense?
If you think that big drug company mergers make sense, then I suppose it does. The two companies have Vytorin, the combination cholesterol drug that's not going to be make anyone as much money as it was supposed to. And Schering-Plough has a promising cardiovascular drug and some other programs that will fit reasonably well into Merck's portfolio. The two main R&D sites are within a few miles of each other in New Jersey, so it'll be interesting to see how the staffing and facilities issues eventually get resolved (there are supposed to be cost savings in that area, naturally).
I'm still not happy about this one, but I'm clearly out of step. I miss the days when large drug companies could keep themselves going with their own research programs. I worry about the vitality of research under the present conditions. And I wonder what happens when there aren't any more big mergers to be made.
Derek Lowe blogs from inside the drug labs at In the Pipeline.
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