Merck & Co. (MRK) on Tuesday said it agreed to acquire the exclusive rights to develop and commercialize Japan's Astellas Pharma Inc.'s (ALPMY, 4503.TO) treatment of recent-onset atrial fibrillation for adults in North America.
Under the terms of the deal, Merck will pay the U.S. subsidiary of Astellas an undisclosed upfront feet, as well as potential milestone payments associated with development and regulatory approval, as well as sales thresholds achieved in Canada, Mexico and the U.S.
The treatment, known commercially as brinavess, is currently approved in more than 10 European countries for the rapid conversion of recent onset atrial fibrillation to sinus rhythm. The European Union approval was based on a handful of studies, according to Merck.
Like other drug makers, Merck faces issues such as patent expirations for top drugs, U.S. health-care overhaul costs and tough regulatory hurdles for new products. In April, the company reported its first-quarter profit soared as purchase-accounting adjustments related to a 2009 merger weighed less heavily on its bottom line. Second-quarter results are expected Friday.
Shares of Merck and Astellas were unchanged in premarket trading, after closing Monday's session at $35.89 and $38.77, respectively.
Copyright © 2011 Dow Jones Newswires
Read more: http://www.foxbusiness.com/industri...ican-rights-astellas-treatment/#ixzz1TDrxuR8k
Under the terms of the deal, Merck will pay the U.S. subsidiary of Astellas an undisclosed upfront feet, as well as potential milestone payments associated with development and regulatory approval, as well as sales thresholds achieved in Canada, Mexico and the U.S.
The treatment, known commercially as brinavess, is currently approved in more than 10 European countries for the rapid conversion of recent onset atrial fibrillation to sinus rhythm. The European Union approval was based on a handful of studies, according to Merck.
Like other drug makers, Merck faces issues such as patent expirations for top drugs, U.S. health-care overhaul costs and tough regulatory hurdles for new products. In April, the company reported its first-quarter profit soared as purchase-accounting adjustments related to a 2009 merger weighed less heavily on its bottom line. Second-quarter results are expected Friday.
Shares of Merck and Astellas were unchanged in premarket trading, after closing Monday's session at $35.89 and $38.77, respectively.
Copyright © 2011 Dow Jones Newswires
Read more: http://www.foxbusiness.com/industri...ican-rights-astellas-treatment/#ixzz1TDrxuR8k