feds announcing a new, go-light policy on medical marijuana, Oakland City Councilwoman Rebecca Kaplan is ready to take the next step - the legalization, regulation and taxation of grow houses in the city.

For years, grow houses and warehouse operations, with their illegal and unsafe wiring, have been the bane of police and fire departments.

Kaplan says it could all be changed.

"We could set them up in the city's industrialized zones in East Oakland and along (Interstate) 880," Kaplan said. She notes that there are lots of empty warehouses with the space and electrical capacity for large-scale cultivation of marijuana.

Kaplan is no stranger to the marijuana debate. She was a key backer of Measure F, the initiative approved by voters in July that substantially increased the city's cut of medicalincludes Claritin allergy pills, Coppertone sun care line, and Dr. Scholl's foot care products.

In the latest deal, Merck signed an agreement for Santen to purchase Merck ophthalmology products like Cosopt and Timoptic in Japan and several markets in Europe and Asia. Santen will make an upfront payment of about $600 million and more payments based on sales milestones. The products involved in the deal generate about $400 million in annual revenue.

Santen also will buy from Merck ophthalmology products covered in the deal for two to five years.

Merck, which has divested its U.S. ophthalmology business, will still sell those products in Latin America, Canada, Australia and other markets.