They were divided by only 60 kilometres, a strip of the industrial district of New Jersey cut in half by the 78 freeway. However, a large combination of factors was needed to unite them: the galloping crisis, some important expiring patents, the need to quickly cut costs and to diversify the offer as much as possible, with an eye to biotechnologies. Thus, following the example of Pfizer and Wyeth, two other pharmaceutical giants got married: the American Merck bought its rival ScheringPlough for 41.1 billion dollars, giving life to a giant capable of generating 46.9 billion in revenues, present with its products in 140 countries. The move by Merck & Co. (not to be confused with the German company of the same name) represents a break with its past of rigorous scientific autonomy, to the point that some analysts have branded the merger as a "last resort tactic". In fact, Whitehouse Station managers calculate that the change in strategy will bring in no less than $2 billion from emerging markets, where Schering-Plough is well established, and the company will be able to significantly expand its drug portfolio by entering new sectors, from pet care (with estimated sales of $3 billion a year) to cosmetics with Dr. Scholl's footwear and Coppertone lotions. The transaction will double the number of blockbusters Merck has in advanced development to a remarkable 18 molecules. Among these stands out TRA, a promising antithrombotic drug to prevent blood clotting. The basic logic is simple: as Farmindustria has calculated in Italy, each expired patent of an important drug can cause losses exceeding 20% of turnover in a year. To prevent so many billions of dollars from going up in smoke, alternatives must be found. In 2012, for example, the patent of Singulair, a cure for asthma which alone generates 18% of Merck's revenues, will expire. In short, the group needed a shot in the arm and seems to have found it in the merger: the dynamic Kenilworth company it acquired has no such imminent deadlines in its calendar and the agreement, starting from 2011, will lead to savings of 3.5 billion a year. Not without some painful side effects, above all a cut of 16,000 jobs, the 15%. And with some risk: ScheringPlough has a joint venture with Johnson & Johnson to commercialize Remicade, a remedy for rheumatoid arthritis. This is a $2.1 billion annual partnership, which could fail if the change of ownership clause were triggered. Therefore, at a technical level, the deal took the form of an acquisition of Merck by Schering-Plough, despite the fact that the former is the dominant entity. The merger does not appear to be the last, in the light, among other things, of Barack Obama's plans to lower the prices of medicines. As shown by a study published by Ims Health, in 2008 the Food and Drug Administration approved 24 new drugs, the highest number in the last three years. But in six months, those products generated $40 million in profits, the lowest figure in ten years. Pfizer, to reduce the repercussions of the crisis, bought Wyeth for the record figure of 68 billion. Roche last week completed the acquisition of the stake it lacks (the 44%) to have control of Genentech. The deal ended an eight-month financial battle, with an offer 9.8% higher than Roche's past offer and 3% higher than at the time it closed (Thursday). Outright, Roche paid $46.5 billion. And now, what are the next mos
