Merck and J&J have cut a deal to end their arbitration dispute over the fate of the Remicade (& Simponi) deal that J&J and Schering-Plough had in place prior to its acquisition by Merck. J&J had claimed the Merck takeover should cancel the deal under a change-of-control provision in the original contract. Merck had tried to side step that with a "reverse merger" argument -- which didn't really pass the smell test.
Merck And Johnson & Johnson End Remicade Spat // Pharmalot.
Now the two Pharma giants have come to a cash agreement and presumably everybody's happy. Merck will retain rights on the two drugs in Europe, Russia and Turkey where about 70% of its $2.8 billion sales lie anyway -- and will split profits 50:50 with J&J. J&J will recpature exclusive rights in Canada, Central and South America, the Middle East, Africa and the Asia Pacific -- most of the pharmerging markets except Russia and Turkey.
J&J also gets a $500 M one-time consolation prize from Merck payable this month. Righ after the tax man calleth no doubt.
Posted by Bruce Lehr April 15th 2011.
In the Pipeline's take on this agreement that Merck-Schering-Plough merger loses much of its value
http://pipeline.corante.com/archives/2011/04/18/merck_and_jj_finally_come_to_terms.php
Posted by: bigredbruce | 04/19/2011 at 04:18 PM