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J&J files arbitration demand against Schering-Plough to resolve dispute on Remicade & Simponi
New Brunswick, New Jersey | Friday, May 29, 2009, 08:00 Hrs  [IST]

In an arbitration demand filed with the American Arbitration Association, Johnson & Johnson has requested a ruling that the agreement and plan of merger between Merck & Co, Inc, and Schering-Plough Corporation constitutes a change of control that would permit the termination of the agreements between Schering-Plough and Johnson & Johnson's subsidiary Centocor Ortho Biotech Inc, regarding the product Remicade (infliximab), a well-established biologic product for inflammatory/immunological diseases, and Simponi (golimumab), a next-generation treatment. The termination of the agreements would return full rights to Johnson & Johnson for the distribution of these products in markets outside the United States where Schering-Plough currently has the rights to distribute these products.

"As its public statements have made clear, Merck is acquiring Schering-Plough," the company said. "The acquisition constitutes a change of control that triggers the right of our Centocor Ortho Biotech subsidiary to terminate the agreements."

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