Merck Sharpe and Dohme and Johnson and Johnson agree distribution deal

Merck Sharpe and Dohme and Johnson and Johnson have agreed a new distribution deal relating to the inflammatory disease treatments Remicade and Simponi.

The deal will see Merck Sharpe and Dohme's subsidiary Schering-Plough transfer exclusive marketing rights for the two treatments in Canada, Central and South America, the Middle East, Africa and Asia Pacific to Johnson and Johnson's Janssen division.

Meanwhile, Merck Sharpe and Dohme will retain rights to the drugs in Europe, Russia and Turkey, territories that account for 70 percent of total annual revenue for the products.

The firms said they will work together to ensure the transfer of the product rights, which takes effect on July 1st 2011, is conducted in a way that does not impact supply.

Kenneth Frazier, president and chief executive officer of Merck Sharpe and Dohme, said: "Merck will have a strong footprint in this category through our significant retained interests in Remicade and Simponi, both of which will be important contributors to our overall portfolio."

Earlier this month, Merck Sharpe and Dohme announced plans to acquire Inspire Pharmaceuticals, a specialist developer of ophthalmic treatments.