Wednesday, October 27, 2010

Additional Color: Merck's Q3 Release Presaged By AP

Some better analysis is appearing in the MSM this afternoon, on what to expect Friday -- out of Whitehouse Station. It largely reiterates what I've written here -- for months now.

In any event, here it is -- per the AP NewsWires:

. . . .[A]nalysts likely will ask what's happening since arbitration hearings ended a couple weeks ago over the rights to revenue from two lucrative drugs for rheumatoid arthritis and other immune disorders. Schering-Plough splits the revenue with Johnson & Johnson, which now argues that under their contract J&J should get all the revenue since control of Schering-Plough has changed. . . .

If Johnson & Johnson wins exclusive rights to revenue from Remicade and successor drug Simponi, which are on pace for a total revenue of well over $7 billion this year, Merck would lose at least $2 billion a year for years. Even for a company bringing in more than $40 billion in sales a year, that's serious money and would reduce profit for years. . . .

My reaction? It is good to see the MSM outlets getting the order of magnitude right -- finally. Check back on Friday, pre-market -- for live blogging.

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