Merck to buy Sirna for $1.1 Billion

Drug maker Merck & Co., Inc. (MRK) said Monday that it has agreed to buy Sirna Therapeutics, Inc. (RNAI), a developer of a new class of medicines based on RNA interference technology, for $1.1 billion in cash.

Acquisitions will be $13 per share in cash

Under the terms of the deal, Merck will acquire through a merger 100% of the equity of Sirna at a price of $13 per share in cash, making Sirna a wholly owned subsidiary. Sirna's RNA interference technology offers a new way to develop medicines and shows great promise in cancer research.

Andrew Fire and Craig Mello were recently awarded the Nobel Prize in Medicine for their discovery of RNAi.

Sirna's lead clinical development candidate, Sirna-027, is a chemically optimized, short interfering RNA currently moving into Phase II development for the treatment of the wet-form of age related macular degeneration as part of a broad collaboration with Allergan, Inc. in the area of ophthalmic diseases.

Sirna also has a tie up with GlaxoSmithKline for the development of short interfering RNA compounds for the treatment of respiratory diseases.

Therapeutic areas includes its other programs

Besides its external collaborations, Sirna has several programs covering a broad range of therapeutic areas, including infectious diseases, metabolism, CNS and dermatology.

Whitehouse Station, New Jersey-based Merck said the acquisition of Sirna complements the research on RNA expression that Merck has been doing since its 2001 acquisition of Rosetta Inpharmatics, Inc.

Peter Kim, president, Merck Research Laboratories, said, "We are delighted about our agreement to acquire Sirna Therapeutics, a company that has established a leading presence in the critically important area of RNAi. We believe that RNAi could significantly change the way in which we go about discovering and developing drugs, and could become a new way to treat patients with unmet medical needs."

Shareholders owning about 36% of Sirna's outstanding shares have committed to support the deal, which is subject to anti-trust clearance, Sirna shareholder's approval and other customary closing conditions. The deal is expected to close in the first quarter of 2007.

Merck is trying to consolidate its position in whatever ways it can, after being entangled in legal battles involving its withdrawn painkiller Vioxx. The company faces nearly 23,800 Vioxx related lawsuits.

Merck shares closes with up and downs

Merck shares closed Monday's regular trading session at $45.64, down 45 cents but gained 12 cents in after hours trading. Sirna shares closed Monday's regular trading session at $6.45, down 5 cents but jumped $6.25 or 96.90% in after hours trading.

Simon Property Group, Inc. (SPG), a real estate investment trust, announced third quarter results, posting earnings that grew from the year-ago period, as revenue increased year-over-year. Though occupancy decreased, rents and sales increased. Earnings per share improved from the prior year and were above Wall Street view. The company also lifted its full year earnings outlook in line with estimates. Additionally, the company announced a quarterly dividend as well.

T R rose to $818.74 million from $783.01

The Indianapolis, Indiana-based company said funds from operations increased to $369.5 million or $1.30 per share from $337.7 million or $1.19 per share in the same period last year. On average, 16 analysts polled by First Call/Thomson Financial expected the company to earn $1.28 per share for the quarter.

Net income available to common stockholders for the quarter increased 27.2% to $94.6 million from $74.4 million in the third quarter of 2005. On a per share basis, the increase was 26.5% to $0.43 from $0.34 in 2005.

Total revenue rose to $818.74 million from $783.01 million in the same period last year, surpassing the Street view of $806.49 million.

Minimum rent increased to $500.59 million from $475.91 million in the prior year, while average rent rose to $21.93 million from $18.48 million in the same period last year. While Tenant reimbursements grew to $233.28 million from $225.97 million, Management fees and other revenues edged up to $20.78 million from $19.75 million in the same period last year. Other income edged down to $42.16 million from $42.89 million reported in the previous year.

The country's largest mall owner said occupancy at regional malls fell 10 basis points to 92.5% from 92.6% in the previous year. At premium outlet centers, occupancy decreased to 99.3% from 99.6% reported last year. Community/Lifestyle Centers reported 60 basis points less occupancy in the quarter at 90.7%, compared to $91.3% in the year-ago period.

The largest U.S. retail property owner said comparable sales per sq. ft. at the Regional Malls rose to $474 from $445, while at Premium Outlet Centers; this increase was to $462 from $436. For Community/Lifestyle Centers, comparable sales per sq. ft. reduced to $220 from $221.

Average Rent per Sq. Ft. increased 2.7% to $35.23 from $34.30 for regional malls, while at Premium outlet centers; the increase was to $24.05 from $22.99. At Community/Lifestyle Centers, the rise was to $11.69 from $11.23.