Schering Plough and Merck in $41.1 B Deal

123jump.com Staff
09 Mar, 2009
New York City

Schering Plough surged after the company agreed to be acquired for drug maker for $41.1 billion. The recent consolidation in the drug industry only highlights the escalating cost of the drug development. Aflac led decliners in the S&P 500 index of 14.9%.

[R]3:45PM New York – Aflac led decliners in the S&P 500 index of 14.9%. Schering Plough surged after the company agreed to be acquired for drug maker for $41.1 billion. The recent consolidation in the drug industry only highlights the escalating cost of the drug development.[/R]

Of the stocks in S&P 500 index, 223 increased, 269 declined and 8 were unchanged.

Aflac Incorporated led the decliners in the S&P 500 index with a loss of 14.9% followed by losses in Merck & Co., Inc with a loss of 11.2%, in The Dow Chemical Company of 5.9%, in International Game Technology of 4.8%, in Avon Products, Inc of 4.5%.

Schering-Plough Corporation led gainers in the S&P 500 index with a rise of 12.3% followed by gains in General Motors Corporation of 10.3%, in Bank of America Corporation of 9.8% and Wyndham Worldwide Corporation of 8.9%.

Other Movers

Aflac Incorporated ((AFL)) slid 7.7% or $1.07 to $12.33 after bond rating agency cut its debt outlook and cautioned additional downgrades on the concerns that the company''s large portfolio of financial institution perpetual debentures may fall in values.

American Vanguard Corporation ((AVD)) fell 4.0% or 41 cents to $11.32 after the specialty chemical manufacturer reported fourth quarter sales rose 3% to $71.1 million from $69.1 million a year ago. Net income in the quarter rose 4% to $7.9 million or 29 cents per diluted share compared to net income of $7.6 million or 28 cents per share a year ago.

Amazon.com, Inc ((AMZN)) added 3.0% or $1.73 to $63.37 after the world’s largest internet retailer was upgraded by Piper Jaffray from “buy” from “neutral.

Aastrom Biosciences, Inc ((ASTM)) a regenerative medicine company surged 49.0% or 0.162 cents to $0.492.

Bristol-Myers Squibb Company ((BMY)) rose 3.6% or 66 cents to $19.01 after the drugmaker was the subject of media speculation with a target price of $30 over the next 12 months.

Cantel Medical Corporation ((CMN)) added 7.4% or 90 cents to $13.04 after the provider of infection prevention and control products reported second quarter sales rose 2.5% to $62.4 million from $60.9 million a year ago. Net income in the quarter rose 73% to $3.8 million or 23 cents per diluted share compared to net income of $2.2 million or 13 cents per share a year ago.

Cytori Therapeutics, Inc ((CYTX)) the maker of medical technologies to enable the practice of regenerative medicine jumped 17.7% or 41 cents to $2.72.

General Motors Corporation ((GM)) gained 7.5% or 11 cents to $1.56 after the members of the Obama administration''s auto task force arrive in Detroit to tour the automaker and Chrysler LLC.

Geron Corporation ((GERN)) the developer therapeutic products for the treatment of cancer and chronic degenerative diseases surged 22.2% or 86 cents to $4.73.

IntercontinentalExchange, Inc ((ICE)) rose 2.2% or $1.38 to $61.77 after the second-largest U.S. futures market operator announced that ICE US Trust, LLC a New York limited liability trust company will begin processing and clearing credit default swap index transactions on March 9, 2009.

JetBlue Airways Corporation ((JBLU)) added 8.1% or 23 cents to $3.19 after the discount carrier was raised to “overweight” by Morgan Stanley.

Schering-Plough Corporation ((SGP)) jumped 17.6% or $3.10 to $20.71 after the global science-centered healthcare company was the target of $41 billion Merck offer. The deal comes on the heels of a recent merger between Pfizer and Wyeth and a combination between Genentech Inc and Roche Holding AG.

StemCells, Inc ((STEM)) a biopharmaceutical company climbed 47.8% or 65 cents to $2.04.