Drug Firms Form Animal Medicine Venture

Merck & Co. and Rhone-Poulenc said they are combining their animal health businesses in a joint venture, creating the world’s largest maker of medicines for pets and livestock. The venture, to be called Merial Animal Health, will have yearly sales of about $1.7 billion, leapfrogging Pfizer Inc.’s business to become the world leader in the $10.7-billion market. With the industry’s biggest product line, the combined company will be better able to compete with industry rivals Pfizer and Switzerland’s Novartis for customer contracts, and make better use of research and development spending. Whitehouse Station, N.J.-based Merck’s shares rose $4.375 to close at $81.25; American depositary receipts of Rhone-Poulenc rose 75 cents to close at $32.375. Both trade on the New York Stock Exchange.