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news.Merck & Co. has advised AstraZeneca that it will not exercise its option to sell its interest in AstraZeneca's non-proton pump inhibitor products - Atacand, Lexxel, Plendil and Entocort plus certain products currently in clinical development - in 2008.
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As a result of this decision, AstraZeneca will have its own option to acquire Merck’s interest in these non-proton pump inhibitor (non-PPI) products in the first half of 2010 and, should it exercise that option, another option to acquire Merck’s interest in the PPI products, including Nexium, in 2012.
Merck will still receive certain payments from AstraZeneca in the first quarter of 2008 in the net amount of $2.6 billion – a payment of approximately $4 billion offset by a loan repayment of $1.4 billion to AstraZeneca from Merck. There is no change to Merck’s 2008 financial guidance or to the previously disclosed guidance with respect to the expected gain from the payments that will be made by AstraZeneca in the first quarter of 2008 as a result of this announcement.