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.
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.
Posted by Bruce Lehr April 15th 2011.