Merck Gets $175 Million from J&J Joint Venture Sale

Merck Gets $175 Million from Johnson & Johnson Joint Venture SaleMerck announced today that they are removing themselves from participation in a joint venture called “Johnson & Johnson Merck Consumer Pharmaceuticals.”

Merck had a 50% interest in the venture with Johnson & Johnson (J&J) and the company said it has sold it to a pair of J&J affiliates named McNEIL-PPC, Inc., McNEIL MMP, LLC, as well to Johnson & Johnson, Inc. itself.

The joint venture originally began in 1989 to develop, manufacture, market and distribute certain over-the-counter (OTC) consumer products in the United States and Canada according to the company.

The sell on part of Merck is a focus-shift within the company.  Prior to the merger with Schering-Plough Inc. in 2009, Merck had been making headway into the consumer products arena.  This is something that Merck intends to refocus on and believes that they will be able to emphasize more attention to by not dealing with their former joint venture with J&J.

Merck will receive a one-time payment of $175 million dollars from J&J and their affiliates and will retain the rights to the Pepcid brand name.  Merck reiterates that by not being part of the joint venture that they believe it will provide them with an increased OTC outlook in the future, including licensing and exploitation of their Rx-to-OTC switches.

Merck is not the only company coming out of the deal with branding rights.  J&J will also have rights to market Pepcid, Mylanta, Mylicon and other brand names.  J&J will also walk away with a manufacturing facility in Lancaster, PA.

Get Analysts' Upgrades and Downgrades Daily - Enter your email address below to receive a concise daily summary of analysts' upgrades, downgrades and new coverage with MarketBeat.com's FREE daily email newsletter.

Latest News

How to Trade on Forex – 8 Steps for Beginners
How to Trade on Forex – 8 Steps for Beginners
Super Nintendo World Theme Park Officially Starts Construction
Super Nintendo World Theme Park Officially Starts Construction
Amazon and Apple Join Foxconn to Secure Chip Business of Toshiba
Amazon and Apple Join Foxconn to Secure Chip Business of Toshiba
Camera Zooms In and Can Recognize Faces
Camera Zooms In and Can Recognize Faces
Netflix Could See 150 Million Worldwide Subscribers
Netflix Could See 150 Million Worldwide Subscribers
LeEco Cutting Over 70% of Staff in U.S. Amidst Pull Back
LeEco Cutting Over 70% of Staff in U.S. Amidst Pull Back


© 2006-2017 Ticker Report. Google+.