March 10, 2009

Merck & Co., Inc. is buying Schering-Plough for US$41.1 billion in a stock and cash transaction, which will see the companies merge under the name Merck.

Merck and Schering-Plough shareholders will own about 68 percent and 32 percent, respectively, of the combined company upon closing of the transaction.

The merger will significantly widen Merck's portfolios of medicines, which is expected to bring additional revenue growth opportunities. The merger will also hand Merck a leading animal health business with strength in vaccines and small molecules.

As Schering-Plough has a considerable share in the global market, including more than US$2 billion in annual revenue from emerging markets, the merger is expected to greatly boost Merck's international growth efforts and help the company's goal of reaching top five market share in targeted emerging markets.

With a more geographically diverse mix of business, the combined company is expected to generate more than 50 percent of its revenue from outside the US.

The combined manufacturing operations of Merck and Schering-Plough will considerably increase manufacturing capabilities, adding more capacity to support anticipated growth in biologics and sterile medicines.

Merck Chairman, President and Chief Executive Officer, Richard T. Clark will lead the combined company.

Merck & Co., Inc. is a global research-driven pharmaceutical company that discovers, develops, manufactures and markets vaccines and medicines.

Schering-Plough is an innovation-driven, science-centered global health care company.