J&J: Agreements with Schering-Plough void after Merck merger

5/28/2009

NEW BRUNSWICK, N.J. The planned merger between Schering-Plough Corp. and Merck & Co. would permit the termination of agreements between Schering-Plough and Johnson & Johnson’s biotech division, J&J asserted in an arbitration demand filed Wednesday with the American Arbitration Association, an alternative dispute resolution organization.

The drug maker said the planned merger constituted a change of control that would allow the termination between agreements its Centocor Ortho Biotech division made with Schering-Plough regarding the inflammatory and immunological disease drugs Remicade (infliximab) and Simponi (golimumab).

“As its public statements have made clear, Merck is acquiring Schering-Plough,” J&J said in a statement. “The acquisition constitutes a change of control that tribbers the right of our Centocor Ortho Biotech subsidiary to terminate the agreements.”

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