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 2.8 percent after the companies announced their agreement over the drugs Remicade and Simponi that lifted a cloud hanging over Merck shares. J&J shares edged up less than 1 percent. "Remicade and Simponi are some of the key pieces to the portfolio," Morningstar analyst Damien Conover said. "For them to retain rights in the more significant markets is a pretty critical win for Merck." The agreement on Friday also should serve to deflect criticism over Merck's rationale for its $41 billion Schering-Plough merger, which had come under some questioning after a highly touted experimental blood-clot drug gained in the merger suffered a clinical setback.
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