In a rare move on Monday, the FDA turned down an application by Merck for a new combination
cholesterol pill that included Pfizer's Lipitor with its own Zetia, which is made in cooperation
with Schering Plough.
The two companies have been partners on cholesterol drugs since 2000, and the new pill was expected to be a blockbuster. Zetia alone generates nearly $13 billion in annual sales.
The FDA turned down the application on the basis that it needed more information regarding the
manufacturing and stability of the drug. Merck is set to acquire Schering Plough in a deal
worth $41.1 billion already approved by antitrust regulators.
In afternoon trading, Merck shares are higher by a little of three quarters of a percent, Schering-Plough shares are higher by over half a percent and Pfizer shares are down by about four tenths of a percent.
For MarketNewsVideo.com, I'm Sayoko Murase.
