We know from history that mergers and acquisitions are freqently not as profitable as they are advertised as being by upper management. Egos get involved and they go through with the deals and often the company suffers. Her is another example.
Merck posts $500m loss on merger costs. Merck acquired the experimental drug vorapaxar when it bought Schering-Plough.
Pharmaceutical giant Merck has reported a $500m (£310m) loss in the final three months of last year, largely thanks to $4bn of restructuring costs related to its acquisition of Schering-Plough.The loss compared with a profit of $6.5bn in the same quarter a year ago.Merck agreed to pay $41bn for its rival Schering-Plough in 2009, creating one of the world's biggest drug companies. Merck also forecast earnings for the year ahead below Wall Street estimates, sending its shares down 3.5%.The company said it expected earnings per share of $3.64 to $3.76 in 2011. Analysts had been expecting $3.82.
It also took a $1.7bn charge related to a major setback in clinical trials for its experimental anti-clotting drug, vorapaxar.
Merck posts $500m loss on merger costs. Merck acquired the experimental drug vorapaxar when it bought Schering-Plough.
Pharmaceutical giant Merck has reported a $500m (£310m) loss in the final three months of last year, largely thanks to $4bn of restructuring costs related to its acquisition of Schering-Plough.The loss compared with a profit of $6.5bn in the same quarter a year ago.Merck agreed to pay $41bn for its rival Schering-Plough in 2009, creating one of the world's biggest drug companies. Merck also forecast earnings for the year ahead below Wall Street estimates, sending its shares down 3.5%.The company said it expected earnings per share of $3.64 to $3.76 in 2011. Analysts had been expecting $3.82.
It also took a $1.7bn charge related to a major setback in clinical trials for its experimental anti-clotting drug, vorapaxar.
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