Please login to the form below

Not currently logged in
Email:
Password:

Merck and J&J reach Remicade deal

Merck and Johnson & Johnson have reached a deal in their dispute over distribution rights to Remicade and the follow-on drug Simponi in markets outside the US

Merck and Johnson & Johnson (J&J) have reached a deal in their dispute over distribution rights to Remicade (infliximab) and the follow-on drug Simponi (golimumab) in markets outside the US. The blockbuster injectable biologic drugs are marketed to treat rheumatoid arthritis and other immune disorders.

The new agreement amends a previous deal that was forged between Schering-Plough and J&J before Merck bought Schering-Plough in 2009, the same year in which Simponi was approved by the US Food and Drug Administration (FDA) as a once-monthly treatment for moderately to severely active rheumatoid arthritis, active psoriatic arthritis and active ankylosing spondylitis.

J&J filed arbitration in May 2009 claiming that the merger amounted to a change in control of Schering-Plough and therefore permitted J&J to terminate the companies' revenue-sharing agreement for Remicade and the follow-on drug.

The new deal, which was reached by the companies before a decision could be made in the arbitration proceedings, calls for Merck to pay  J&J $500m and allows J&J to retain the right to distribute the drugs in the US market.

J&J will also have exclusive marketing rights for the drugs in Canada, Central and South America, the Middle East, Africa and Asia Pacific territories beginning July 1. Merck retains rights through Europe and the emerging markets Russia and Turkey, but will split profits from these markets with J&J.

Merck said the deal will allow it to hold onto about 70 per cent of its annual revenue from the drugs, which brought in $2.8bn for the company last year. J&J realised about $4.8bn in revenue from the drugs last year, including $1.2bn in sales to distribution partner Merck.

15th April 2011

Share

Featured jobs

Subscribe to our email news alerts

PMHub

Add my company
Swordfish Advertising

At Swordfish Advertising, we believe building an effective brand shouldn't be stressful. Don't get us wrong; it takes blood, sweat...

Latest intelligence

Managing real world data governance
An aspirational framework to make the most of data and its role in improving patient care...
19_No_patients_behind.png
Why digital communication means leaving no customer behind
You don’t have to accept that only a small percentage of your customers will ever get the full information about your product....
Challenges of using electronic media with translated content
There are various simple steps that can be taken to minimise the impact of translated languages on electronic media....

Infographics