It certainly didn't take long for Schering-Plough
Just seven days after it closed its acquisition, the drugmaker announced that the FDA had accepted a New Drug Application (NDA) for antipsychotic asenapine, which it acquired in the deal that sent Akzo Nobel's
If it's approved next year, asenapine would enter a competitive market for bipolar and schizophrenia treatments, which is probably one of the reasons that Pfizer
However, the compound has performed fairly well in clinical trials against future competitors. In one study, asenapine worked as well as Eli Lilly's
Schering won't know for a while whether the $14 billion purchase was a good deal, but the timing of the NDA filing epitomizes why Schering made the purchase. The Organon acquisition gives Schering five drugs in phase 3 trials and another 16 in earlier stages of the clinic. Add to that about $5 billion in sales -- minus some poultry vaccines that the FTC made it sell off -- and Schering is well on its way to being less dependent on its cholesterol drug partnership with Merck
Further Foolishness on antipsychotics:
Fool contributor Brian Orelli, Ph.D., doesn't own shares of any company mentioned in this article. Johnson & Johnson and Eli Lilly are selections of the Income Investor newsletter. Pfizer is a pick of the Inside Value newsletter. The Fool has a disclosure policy.