Schering-Plough and Bayer Ink Deal

Schering-Plough(SGP Quote) Monday announced a broad marketing agreement with Germany's Bayer(BAY Quote) that both companies said will lead to a more efficient use of their marketing and sales strengths.

In a transaction expected to close Oct. 1, Schering-Plough will get exclusive rights to sell in the U.S. an assortment of Bayer primary care products, such as the antibiotics Avelox and Cipro. It also will take over for Bayer the U.S. marketing of the erectile dysfunction drug Levitra, which is co-promoted with GlaxoSmithKline(GSK Quote). Schering-Plough will pay royalties based on sales.

Schering-Plough said the transaction would be "mildly dilutive" on earnings per share this year and then mildly accretive. The company didn't provide specific estimates or provide details on the royalty arrangements. ...