March 13, 2009
Merck, Schering-Plough merger faces JNJ rights obstacle
US pharmaceuticals group, Johnson & Johnson (JNJ), reserves the right to claim back full rights over two pivotal medicines as a result of Merck's US$41.1 billion planned takeover of Schering-Plough, according to Financial Times.
JNJ could cancel its partnership with Schering-Plough for sales of anti-inflammatory drug Remicade and of golimumab, a newer version in development. JNJ can seek mandatory binding arbitration after 20 days' notice if it considers there to have been a change in control at Schering-Plough.
If JNJ does withdraws the rights, the acquisition could suffer a huge blow as annual sales could be reduced by more than US$2 billion, and sinking sales forecast after launch in 2010 of golimumab of a further US$1 billion.
Merck might have to offer first refusal rights of Schering-Plough's animal health products to Merial, Merck's joint venture with Sanofi-Aventis of France, bankers said Tuesday (Mar 10).
