Merck pays J&J $500m in drug row settlement
Merck said Friday it has agreed to pay fellow US pharmaceutical giant Johnson & Johnson $500 million to end a two-year tussle over profit-sharing deals for two anti-inflammatory drugs.
The resolution ends a dispute over the Remicade and Simponi drugs, which treat chronic inflammatory diseases such as rheumatoid arthritis, which began in May 2009 when J&J launched an arbitration process.
Johnson & Johnson "will... receive a one-time payment of $500 million (346 million euros) in April 2011," the companies said in a statement.
Friday's deal also amends the marketing rights for the two drugs between the two companies.
Under the new terms, Merck keeps its right to market the drugs in Europe, Russia and Turkey while Johnson & Johnson retains the marketing rights in the United States.
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