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news.Schering-Plough Corporation has exercised an option from a previous agreement with Centocor, a division of Johnson & Johnson, to co-develop and commercialize a drug for the treatment of rheumatoid arthritis and other immune-mediated inflammatory diseases.
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As a result of the decision to exercise its rights to the compound, Schering-Plough says it will record an R&D charge of approximately $125 million in the third quarter for R&D costs previously incurred by Centocor. Schering-Plough and Centocor will then share future development and commercialization expenses related to the drug called CNTO 148.
According to the company, Schering-Plough now receives exclusive worldwide marketing rights to the drug, excluding the US, Japan, China, Hong Kong, Taiwan and Indonesia.
The decision to take up its option for this drug is part of Schering-Plough’s wider initiative to improve the performance of the company.
Fred Hassan, chairman and CEO of Schering-Plough commented. “Through this action, Schering-Plough expects to further increase our importance to health providers and patients in the area of immune-related inflammatory disorders, where unmet medical need is high,” he added.
Phase II studies for CNTO 148 have already been completed for the treatment of rheumatoid arthritis, and the compound is expected to move into phase III studies in early 2006.