Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=4579
Here are highlights from Thursday's Analyst Blog:
Merck-Sanofi JV a "No Go"
Merck (NYSE: MRK) and Sanofi-Aventis (NYSE: SNY) recently announced that they will no longer pursue their plans of combining their animal health segments. The companies mutually terminated their deal which was announced on March 9, 2010.
Sanofi and Merck were looking to set up a joint venture (JV) by combining Sanofi's animal health business, Merial, with Merck's animal health business, Intervet/Schering-Plough. However, the companies decided to terminate the deal due to the complexities involved in completing the transaction.
Prior to the termination of the deal, Merck and Sanofi were expecting to close the deal in the third quarter of 2011, representing a delay from previously announced timelines. The animal health segments posted combined sales of about $5.5 billion in 2010.
Going forward, Sanofi and Merck intend to conduct their animal health businesses separately. While Sanofi's Merial posted sales of $2.6 billion in 2010, Merck's Intervet/Schering-Plough delivered sales of $2.9 billion in 2010.
Large Players in Animal Health Segment
Over the past few quarters, Eli Lilly has been working on strengthening its animal health business. Earlier this month, Eli Lilly extended an irrevocable and unconditional offer for the animal health business of Janssen Pharmaceutica NV, a Johnson & Johnson (NYSE: JNJ) company.
Eli Lilly's animal health division, Elanco, markets products to more than 75 countries. With this deal, Eli Lilly is looking to strengthen its presence in the animal health market in Europe. Janssen is based in Belgium and focuses primarily on European markets.
In May 2010, Eli Lilly acquired the European marketing rights to several animal health product lines divested by Pfizer. The company also acquired a manufacturing facility in Sligo, Ireland, which is used for the production of animal vaccines.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5514.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5516
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=4580.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/ZacksResearch
Join us on Facebook: http://www.facebook.com/ZacksInvestmentResearch
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Web Content Editor
SOURCE Zacks Investment Research, Inc.