MSD to retain interest in AstraZeneca non-PPI products

Merck, Sharp and Dohme (MSD) has announced that it is to retain its interest in certain AstraZeneca non-proton pump inhibitor (non-PPI) products.

MSD has told the pharmaceutical company that it not going exercise its option to sell its interest in the products, which fall under a joint venture between the two firms.

Products covered under the agreement include Atacand, Lexxel, Plendil and Entocort, as well as other candidates currently in development.

Following MSD’s statement, AstraZeneca now has its own option to acquire Merck’s interest in the non-PPI products in the first half of 2010 and subject to this move, it has another option to acquire MSD’s interest in the PPI products including Nexium, in 2012.

MSD is to continue to receive certain payments from AstraZeneca in the first quarter of 2008 which is likely to amount to $2.6 billion (1.3 billion pounds).

However, there is no change to MSD’s 2008 financial guidance or to previously disclosed guidance that relates to payments that will be made to AstraZeneca in the first quarter of 2008 as a result of the announcement.

Also this month, AstraZeneca announced the appointment of Jean-Philipe Courtois to the board of directors of the firm as a non-executive director.