Sanofi Aventis merger

This extract from marketwatch of Dec 21 Mkt Open

French pharmaceutical Sanofi-Aventis on Monday struck a deal to buy Chattem Inc. for $1.9 billion in a bid to expand its presence in over-the-counter and consumer brands.

Sanofi (SNY 38.80, -0.31, -0.79%) (FR:SAN 54.20, -0.50, -0.91%) said it will pay $93.50 in cash for each share of Chattem (CHTT 69.98, +1.29, +1.88%) -- a 34% premium to Friday's closing price and a 44% premium to the shares' six-month average price.

Chattanooga, Tenn.-based Chattem's brands include Gold Bond, Icy Hot, ACT, Cortizone-10, Selsun Blue and Unisom.

For Sanofi, this deal will mark the first time it's been directly in the U.S. over-the-counter market. Sanofi also will seek to convert Allegra, its popular antihistamine treatment, from a prescription drug to an OTC product.

Once the drug becomes OTC, Chattem will distribute it.

CHTT 69.98, +1.29, +1.88%

and CEO Zan Guerry and other senior managers have agreed to lead Sanofi's U.S. consumer health division once the deal is completed, Sanofi said.

Earlier Monday, Sanofi gave an update on its pipeline, as it's stopping development of drugs for insomnia and atrial fibrillation but having received fast-track designation from the Food and Drug Administration for a potential treatment for prostate cancer.

Analysts at Jefferies & Co. said the updates result in the loss of 1% of estimated 2015 revenue.