|Image courtesy of Kaiser Permanente|
The drug: Remicade
Company: Johnson & Johnson/Merck/Mitsubishi Tanabe Pharma
Estimated worldwide sales 2012: $7.67 billion
Johnson & Johnson ($JNJ) and Merck ($MRK) still share Remicade. But J&J now has the lion's share of the drug, thanks to a renegotiated marketing partnership. And that means J&J expects a bigger chunk of revenue from Remicade this year, while Merck is looking for less. All told, Remicade is expected to bring in $7.67 billion.
When Merck merged with J&J's original Remicade marketing partner, Schering-Plough, that triggered a dispute that finally wrapped up in April 2011. Merck agreed to pay J&J $500 million and concede some of its sales territories and profits. But it held onto territories that accounted for about 70% of its previous Remicade sales. And the two companies agreed to split profits 50-50, rather than the 58-42--in Merck's favor--previously arranged.
So far, Remicade sales have already dropped for Merck. The new partnership went into effect last July, and sales inched downward to $2.67 billion. For the first quarter of this year, however, Remicade dropped by 28%, Merck said.
Meanwhile, Remicade is J&J's biggest drug. Its sales for the first half of the year grew by 9.1% to $1.77 billion. And the company is rejigging its Remicade apparatus for the long haul. The company said it would move production of Remicade to Puerto Rico from a plant in Switzerland.
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