Health and Healthcare
Merck's (MRK) New Merger, Another Way To Save Money
Published:
Last Updated:
Merck (MRK) is merging with Schering-Plough (SGP) in a deal that the companies say is worth $41.1 billion. In reality, Merck is making an acquisition. Its shares will be the currency to compete the deal and its CEO will run the new company.
No matter what they two companies have to say about “synergy”, the deal is based on saving money in a rough economy and in a world where Big Pharma companies are losing many of their profitable drugs as their patents expire.
The two firms said that the marriage would strengthen the companies by putting together they drug portfolios and R&D. That is almost certainly clear. But, buried in the announcement is the announcement that the merger will save $3.5 billion a year.
With Merck in a weakening position due to strong competition from generics and other Big Pharma companies fighting to keep their market shares, building a new company with lower costs is the key to the deal.
Douglas A. McIntrye
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.