Vetnosis publishes Merial-Intervet/Schering-Plough Portfolio Conflict Analysis

Edinburgh, UK - 17^th April 2009 - Vetnosis publishes Merial-Intervet/Schering-Plough Portfolio Conflict Analysis

Vetnosis has published the findings of its independent analysis of conflicts within the Merial and Intervet/Schering-Plough portfolios in a new multi-client study.

On 9 March 2009 Merck and Schering-Plough announced they had entered into a definitive merger agreement under which Merck will acquire Schering-Plough in a cash and stock consideration valued at $23.61 per share, an aggregate of $41.1 billion.  The decision has been approved by the Boards of Directors of both companies.  The transaction is subject to Shareholder approval and clearance by the appropriate authorities.

The transaction would give Merck an interest in animal health through the acquisition of Intervet/Schering-Plough Animal Health and its equity investment in Merial, a 50:50 joint venture with sanofi-aventis.

Merck's strategic intent for its animal health interests remains unclear, however, a number of scenarios exist, the most interesting of which would be for Merck to integrate Intervet/Schering-Plough into Merial and maintain its 50:50 joint venture with sanofi-aventis.  This would maintain animal health outside Merck's operational business units and realise cash from the asset sale of 50% of Intervet/Schering-Plough to sanofi-aventis.

The large portfolios of Merial and Intervet/Schering-Plough may present some regulatory and commercial challenges due to portfolio conflicts in a number of key categories.  These challenges for Merial and Intervet/Schering-Plough present opportunities for other animal health companies looking to add strong brands to their own portfolios.

This multi-client study delivers a detailed qualitative Portfolio Conflict Analysis for Merial and Intervet/Schering-Plough in Australia, Brazil, Canada, France, Germany, Italy, Mexico, New Zealand, Spain, UK and USA.  We have drawn upon regulators own reports on previous transactions to guide our market segmentation and portfolio conflict analysis.

For further information on the Merial-Intervet/Schering-Plough Portfolio Conflict Analysis please contact Tim Evans.
 
Tim Evans
Managing Director
T: +44 (0)131 718 0772
Email: tim.evans@vetnosis.com