WHITEHOUSE STATION, N.J. (AP) — Drugmakers Merck and Johnson & Johnson say they've reached a deal to end a multibillion dollar arbitration dispute over rights to two lucrative drugs for immune disorders.
Merck will pay J&J $500 million, and the companies will divide distribution rights for Remicade and Simponi, which treat chronic inflammatory diseases like rheumatoid arthritis.
J&J receives exclusive marketing rights for the drugs in Canada, Central and South America, the Middle East, Africa and Asia Pacific territories. Merck retains rights through Europe, Russia and Turkey and will divide the profit from those territories with J&J.
The drugs generate combined sales of several billion dollars annually, and Schering-Plough had split revenue with J&J before Merck bought Schering-Plough in 2009.
J&J had started an arbitration bid to gain all global revenue from the drugs.