Merck to buy Schering-Plough

The latest combination comes only a few weeks after Pfizer Inc. announced it has agreed to pay 68 billion for Wyeth.

Big companies across the pharmaceutical industry are facing slumping sales as the blockbuster drugs of the 1990s lose patent protection,complicated by a dearth of major new drugs coming on the market.

Merck and Schering-Plough,along with most of their rivals,are currently eliminating thousands of jobs and restructuring operations to further cuts costs.

Therell be no immediate changes to staffing levels,Merck spokeswoman Amy Rose told The Associated Press. Eventually,we anticipate an approximate 15 per cent reduction in the combined company8217;s headcount, implying nearly 16,000 fewer jobs.

Merck Chairman and CEO Richard Clark told The Associated Press this is a uniquely complementary match. He said the combined company will be well-positioned for sustainable growth through scientific innovation and have a strong,diversified product portfolio.

Schering-Plough CEO Fred Hassan said in an interview that those drugs include Nasonex,Pegintron for hepatitis,cancer drug Temodar,the Nuvaring contraceptive and the two cholesterol drugs,all of which have patent protection until 2014 or later.