Schering-Plough plans to move into the increasingly fertile vaccine market.

[Guest guest]

from 2007

KEY PHRASE - " The company now plans to move into

the increasingly fertile vaccine market. "

http://www.in-pharmatechnologist.com/news/ng.asp?id=74894

Schering-Plough offers €11bn for Organon

By Dr Matt Wilkinson

12/03/2007 - Schering-Plough took the industry by

surprise this morning when it unveiled an €11bn

bid to buy European rival Organon from Akzo Nobel.

Schering-Plough said the deal would bolster its

pipeline and add increased biologics

manufacturing capabilities. The company now plans

to move into the increasingly fertile vaccine market.

The move continues a trend for large

pharmaceutical companies to acquire 'speciality'

companies to broaden their portfolios. Earlier

this year Merck KGa wrapped up its acquisition of

biotechnology company Serono, while a year ago

Bayer bought Schering AG, a producer of speciality pharmaceutical products.

The acquisition will add five late stage

development drugs to Schering-Plough's pipeline

as well as giving them access to Organon's

biologics manufacturing plants. Shares of both

companies rose after the news broke, with Akzo rising 16 per cent to €53.96.

According to Fred Hassan, CEO of Schering-Plough,

" (the acquisition) builds on our growing strength

in primary care, giving us immediate access to

central nervous system (CNS) and women's health care products. "

" In light of Schering-Plough's expanding early

pipeline, Organon BioSciences' strong biologics

manufacturing capability is a further important

asset for the combined company. "

Organon had top line sales of nearly $5bn

(€3.8bn) in 2006, which accounted for one-third

of Akzo Nobel's group sales, and almost half of

its profits and is the world's third largest supplier of birth control pills.

The company expects to achieve annual cost

savings of $500m within three years of the deal

closing, although so far has not commented on

where they expect these to be generated.

Organon's main products focus on the infertility,

contraceptive and antidepressant markets, with no

overlap with Schering-Plough's cholesterol,

arthritis, hepatitis C and allergy product lines.

DrugResearcher.com will take a closer look into

the product line and pipeline matches later this week.

Hassan said: " there will be no issue regarding

selection of overlapping candidates for positions in the new organisation. "

The acquisition of the recent spin off brings an

end to Akzo's plans to take Organon public.

Several private equity bidders had made offers,

but Akzo turned the offers down claiming they

were too low. They also stressed the importance

of keeping the company intact to avoid excessive

job losses from their international workforce of nearly 14,000.

" We are convinced that we have found a good home

for Organon BioSciences, " said Hans Wijers, CEO of Akzo Nobel.