Key Pharmaceuticals Merges With Schering-Plough Subsidiary
MIAMI (AP) _ Key Pharmaceuticals Inc. on Thursday became a unit of Schering-Plough Corp. through an exchange of stock valued at about $835 million.
Schering-Plough, an international producer of pharmaceutical and consumer products headquartered in New Jersey, said it became a $2.1 billion company as Key was merged into its pharmaceutical arm. Last year, it earned $192.6 million on sales of $1.9 billion.
Under the transaction, Schering-Plough approved the issuance of up to 9.885 million shares of its common stock to exchange to Key Pharmaceutical s’ shareholders, representing a swap on one Key share for .265625 of a share of Schering-Plough. At Thursday’s closing price of $84.62 1/2 a share of Schering-Plough, the transaction is valued at $835.7 million.
″Key’s product lines make a natural fit with Schering-Plough’s pharmaceutical operations,″ said Robert P. Luciano, Schering-Plough’s chairman and chief executive officer.
Key’s research and development unit will remain in Miami and its manufacturing facilities in Florida and Puerto Rico will continue in operation.
The company’s marketing and sales operations will relocate to Schering- Plough ’s pharmaceutical headquarters in Kenilworth, N.J., the companies announced.