The "negotiated settlement" with Merck over sales rights to Remecade and Simponi indicates to me that J&J did not pull out all the legal stops to obtain worldwide full rights to these drugs. This is verified by the greater uptick in the Merck share price Vs. that of JNJ.
Here is the deal that J&J should have done better than.
"Merck will retain exclusive marketing rights throughout Europe, Russia and Turkey ("retained territories"). The retained territories represent approximately 70 percent of Merck's 2010 revenue of approximately $2.8 billion from REMICADE and SIMPONI, while the relinquished territories represent approximately 30 percent. In addition, all profit derived from Merck's exclusive distribution of the two products in the retained territories will be equally divided between Merck and Johnson & Johnson, beginning July 1, 2011. Under the prior terms of the distribution agreement, the contribution income (profit) split, which is currently at 58 percent to Merck and 42 percent to Centocor Ortho Biotech Inc., would have declined for Merck and increased for Johnson & Johnson each year until 2014, when it would have been equally divided. Johnson & Johnson will also receive a one-time payment of $500 million in April 2011."
I hold both Merck & JNJ stock. Clearly, JNJ is the lessor in this fight, and it losts badly. Very disappointed with Russ Deyo performance - the legal guy. The legal maneuver by Merck during its merge was known by everyone and JNJ legal did not have any move to protect the shareholder interest. I think Russ should return his multi-million bonus back to the company.