Exclusive – Merck Talks To Benzinga About Collaboration With Roche (MRK)

As reported yesterday, Merck MRK has entered into agreements with Roche to improve treatment, diagnosis and awareness of chronic hepatitis C infection in developed and emerging markets. Up until now, the two companies have been rivals in the hepatitis C drug market. Both have been selling competing versions of peginterferon alfa (Merck has PEG-Intron, while Roche has Pegasys). To some, the collaboration is a surprise, but it actually makes total sense and can be viewed as two pharmaceutical businesses putting the greater good ahead of financial gain. “There are multiple aspects to the deal,” Carol Ferguson, Merck's senior director on investor relations, told Benzinga. “There are the promotion, research and diagnostic sides. It's a unique opportunity for Merck because Roche has an established sales force for Pegasys and it has an 80 percent share of the market. They also have an established position with physicians. We have no more details at the moment, but this will be an overall collaboration to improve education and the treatment of hep C.”