Merck Will Buy Schering-Plough for $41.1 Billion

Merck announced today that it is paying $41.1 billion in cash and stock for Schering-Plough (S-P), which manufactures the anti-HCV combination treatment regimen peginterferon alfa-2a (PegIntron) and ribavirin (Rebetol). S-P also brings cardiovascular, respiratory and oncology drugs to Merck's pipeline. Additionally, Merck says the merger with S-P will boost its presence in the biologics market.

Merck and Company is the manufacturer of raltegravir (Isentress), the first HIV integrase inhibitor approved by the U.S. Food and Drug Administration (FDA) for the treatment of HIV infection. Integrase inhibitors work by preventing HIV from inserting its genetic material into host cells, thereby halting viral replication. Because integrase inhibitors work by a different mechanism than currently approved anti-HIV drugs, they are likely to work against virus that has developed resistance to other drug classes.

S-P also brings to Merck the experimental HCV NS3 protease inhibitor boceprevir and the experimental HIV CCR5 antagonist vicriviroc.

Boceprevir is a "STAT-C" agent, a drug that works directly against the life cycle of the hepatitis C virus. S-P has completed full enrollment in the HCV SPRINT-2 trial in which 800 mg thrice daily boceprevir is used in combination with PegIntron plus ribavirin.

Vicriviroc is a novel entry and fusion inhibitor that has shown promise in the treatment of HIV patients who are resistant to enfuvirtide (Fuzeon) and other antiretrovirals. The US Food and Drug administration has granted fast-track approval status to vicriviroc. Entry and fusion inhibitors act differently than other classes of anti-HIV drugs (e.g., protease inhibitors, nucleoside reverse transcriptase inhibitors) by preventing HIV from infecting and entering cells, rather than trying to eradicate HIV after the virus has infected a cell.

Both boceprevir and vicriviroc are considered promising new agents for the treatment of chronic hepatitis C and HIV infection, respectively.

3/10/09

Source
Maureen Martino. Merck to buy Schering-Plough for $41.1B. Fiercebiotech.