Merck & Co (MRK.N) will retain European rights to two lucrative arthritis drugs while ceding rights elsewhere to Johnson & Johnson (JNJ.N) and making other concessions as the drugmakers resolved a high-stakes dispute stemming from Merck's merger with Schering-Plough. Merck shares rose 3 percent after the companies announced their agreement, which lifted a cloud that has been hanging over Merck shares. J&J shares were unchanged. Under the agreement, Merck will relinquish exclusive marketing rights to the drugs, Remicade and Simponi, to J&J in territories including Canada, Central and South America, the Middle East, Africa and Asia Pacific effective July 1. But Merck will retain rights throughout Europe, Russia and Turkey, territories that represent about 70 percent of Merck's 2010 revenue from the drugs of about $2.8 billion.
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