Arbitration to begin over disputed arthritis drug
Story Created: Sep 07, 2010 at 1:49 PM America/New_York

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WHITEHOUSE STATION, N.J. (AP) - Drugmaker Merck & Co. says arbitration will begin in late September in its dispute with Johnson & Johnson over revenue from two blockbuster drugs for rheumatoid arthritis.

The dispute arose when Merck bought Schering-Plough Corp., which has shared billions in revenue with J&J from Remicade and a successor drug, Simponi.

Merck structured its purchase of Schering-Plough as a reverse merger, meaning that Schering-Plough technically was the surviving corporation. That was an attempt to block change-of-control provisions in Schering's contract with J&J.

Johnson & Johnson has argued that those provisions are in force and that it is entitled to Schering-Plough's share of revenue from the drugs - roughly $2 billion a year - plus damages.


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