« The NIH Takes the Plunge |
| Arena, Lorcaserin, and the FDA »
May 21, 2009
J&J Lowers the Boom
As predicted here (and everywhere else that's looked at this deal), Johnson & Johnson is not sitting back and letting Schering-Plough "take over" Merck - not when that would mean billions of dollars of lost revenue, they're not. Today the company has filed a notice of intention to arbitrate.
"As the public statements make clear, Merck is acquiring Schering-Plough", the company says, and that triggers an arbitration hearing under their agreement with them for sales of Remicade (and the newer agent, Simponi). Merck continues to insist that their strategy is bulletproof, and I guess we'll find out who's right. It could take months, unless Merck is willing to walk away from that revenue stream (and they're probably not).
Interestingly, that Wall Street Journal link quotes a "person familiar with the matter" as saying that Schering-Plough turned to J&J after Merck made its initial overtures. J&J passed on the chance to acquire the whole company, though, leaving Schering-Plough no choice but to act as if an offer from Merck was the answer to one of their most longstanding prayers.
+ TrackBacks (0) | Category: Business and Markets
POST A COMMENT
- RELATED ENTRIES
- How Not to Do It: NMR Magnets
- Allergan Escapes Valeant
- Vytorin Actually Works
- Fatalities at DuPont
- The New York TImes on Drug Discovery
- How Are Things at Princeton?
- Phage-Derived Catalysts
- Our Most Snorted-At Papers This Month. . .