Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Bristol-Myers Squibb Co (BMY) To Share In Sales Of Merck & Co., Inc. (MRK) Keytruda Following Litigation Settlement

Merck & Co., Inc. (NYSE:MRK) has agreed to share a portion of Keytruda sales with Bristol-Myers Squibb Co (NYSE:BMY) and Ono Pharmaceutical Co., Ltd. (Japan) (OTCMKTS:OPHLY), who had claimed that the drug infringed on their patent.

Keytruda is an anti-PD-1 therapy containing PD-1 antibodies for treating cancer. Bristol-Myers and Ono Pharmaceutical disputed Merck’s use of PD-1 antibodies in Keytruda.

Merck To Make $625 Million In Initial Payment

After a period of push and pull between Bristol-Myers Squibb Co (NYSE:BMY) and Ono Pharmaceutical Co., Ltd. (Japan) (OTCMKTS:OPHLY) on one side and Merck on the other, the companies said they have reached an agreement to settle the patent dispute. As part of the settlement, Bristol-Myers and Ono will withdraw all the claims they brought up against Merck relating to Keytruda.

As for its part, Merck has agreed to pay $625 million to Bristol-Myers and Ono as an initial payment. Additionally, Merck will surrender 6.5% of Keytruda’s global sales to Bristol-Myers and Ono beginning January 2017 until December 2023. The deal further states that Merck will surrender 2.5% of Keytruda’s global sales from January 2024 until December 2026.

Bristol-Myers and Ono will share the payment from Merck at the rate of 75% for BMY and 25% for Ono Pharmaceutical Co., Ltd. (Japan) (OTCMKTS:OPHLY).

Label Expansion

Merck is working to expand the label of Keytruda in combination with chemotherapy as a first-line treatment for metastatic non-small cell lung cancer (NSCLC). The FDA has accepted Merck’s request for Keytruda’s label expansion application and granted it priority review status. The regulator is expected to make a final decision on the application by May 10, 2017.

Merck & Co., Inc. (NYSE:MRK) appears to be on track to beat Bristol-Myers to market for a first-line lung cancer drug. Bristol-Myers is seeking approval of a combination therapy featuring two of its immuno-oncology drugs Opdivo and Yervoy as first-line treatment for lung cancer. However, after data reviews, Bristol-Myers Squibb Co (NYSE:BMY) decided against pressing for accelerated approval of the combined therapy in the U.S.

Follow Bristol Myers Squibb Co (NYSE:BMY)
Trade (NYSE:BMY) Now!

Merck & Co., Inc. (NYSE:MRK) shares have gained more than 20% over the last 12 months, but retreated 1.2% to $61.81 in the last session.

Follow Merck & Co. Inc. (NYSE:MRK)
Trade (NYSE:MRK) Now!

Note: This article is written by Andy Parker and originally published at Market Exclusive.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
This is a FREE report from Insider Monkey. Credit Card is NOT required.