J&J, Schering Arthritis Drug Shows Success In Stopping Damage

   DOW JONES NEWSWIRES 
 

Johnson & Johnson (JNJ) and Schering-Plough Corp. (SGP) announced that the next-generation arthritis therapy called Simponi showed "significantly greater" stoppage of structural damage compared with a placebo and methotrexate, the current standard therapy for rheumatoid arthritis.

The late-stage trial data were released at the 2009 American College of Rheumatology annual meeting. At the same locale, Roche Holding AG (RHHBY) gave data showing its proposed treatment was also much better than methotrexate.

Schering owns most of the drugs' international marketing rights, but J&J would gain the full rights if Schering-Plough underwent a formal change of control. That is among the reasons why Schering's planned purchase by Merck & Co. (MRK) is legally being structured in a way that Schering is the resulting entity, though the combined company will carry the Merck name. Also at stake in the deal is the blockbuster arthritis treatment Remicade, which J&J also holds some rights to.

Johnson & Johnson shares rose 0.2% to $60.60 premarket. Schering-Plough shares were inactive, with a previous closing price of $29.29.

-By Kevin Kingsbury; Dow Jones Newswires; 212-416-2354; [e-mail]