Merck & Co sells JV products to AZ

Anglo-Swedish drugmaker AstraZeneca is to pay US major Merck & Co some $2.6 billion net under a restructuring of their joint venture which markets the products of legacy company Astra in the USA.

Under the terms of the deal, Merck will receive around $4.3 billion for the partial retirement of its limited partnership interest, giving up rights to four of the JV's drugs - Toprolol XL (metoprolol), Pulmicort (budesonide), Symbicort (budesonide/formoterol) and Rhinocort (budesonide). As part of the accord, Merck will recompensate AstraZeneca $240.0 million for past overpayment of royalties and will also repay a $1.4 bilion loan to Astra.

The US firm has elected to retain the rights to four other products within the option agreement - Atacand (candesartan cilexetil), Lexxel (enalapril and felodipine), Plendil (felodipine) and Entocort (budesonide), but AstraZenca will be able to purchase these, plus four more developmental products, in 2010 for a consideration of $650.0 million. If the UK-based firm decides to follow through on this, it will gain a second option to repurchase Merck's rights to the JV's Prilosec (omeprazole) and Nexium (esomeprazole) in the USA.