MERCK HITS TRIGGER FOR ASTRA BUSINESS

Merck & Co of the USA has announced that its sales of its Swedish partner, Astra's products in the US market have reached the amount that triggers the formation of a separate entity for the business related to Astra products. The trigger amount is $500 million over a 12-month period.

Under the agreement drawn up between the two companies in 1982, Merck markets three Astra products in the USA. The agreement stipulates that if US sales reach a predetermined level by December 31, 1993, Merck will take steps to form a separate entity to market Astra products.

According to the agreement, Astra will decide late 1994 or early 1995 whether it will become a 50% owner of this business. Should Astra decide to pursue this transaction, the amount that Astra will be requested to pay Merck will be approximately equal to US sales of Astra products over a 12-month period, beginning September 1, 1993. Until Astra decides what it will do, Merck continues to own and run Astra/Merck Group in the USA. The group has a 500-strong sales force and will eventually employ around 900 people.