Monsanto-Upjohn Merger Plan Jolts Stocks

The planned merger of Monsanto Co. and Pharmacia & Upjohn Inc. rattled investors, as shareholders thought both U.S. pharmaceutical companies could have made a better deal. But analysts said the companies are making the right move to sustain their long-term growth. Monsanto’s products include the blockbuster arthritis treatment Celebrex, farm chemicals and genetically engineered seeds. Pharmacia’s major products are the contraceptive Depo-Provera and the over-the-counter hair-growth gel Rogaine. Shares in St. Louis-based Monsanto fell $4.48 to close at $37.27, and Peapack, N.J.-based Pharmacia & Upjohn slipped $3.34 to close at $46.91on the Big Board, reducing the value of the all-stock deal to about $23 billion from the initial $27 billion.