Merck, J&J end fight over Simponi, Remicade
Merck & Co. Inc. (NYSE:MRK) will pay $500 million and relinquish a portion of future sales from two autoimmune drugs to partner Johnson & Johnson (NYSE:JNJ) to settle a 2009 dispute over distribution rights. Effective July 1, Merck will relinquish distribution rights to Remicade infliximab and Simponi golimumab in Canada, Central and South America, the Middle East, Africa and Asia Pacific, territories which Merck said account for about 30% of its $2.8 billion combined revenue from the products. Merck retains rights in Europe, Russia and Turkey. Additionally, J&J will receive 50% of all future profit from Merck's three territories, an increase from the 42% it currently receives. Merck gained rights to the products through its 2009 merger with Schering-Plough. J&J had sought the return of all rights after alleging the merger constituted a change of control under its original deal with Schering-Plough. ...