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Merck KGaA

Drug Names(s): Recombinant Beta InterFeron, interferon beta-1a

Description: Interferon beta plays an important role in regulating infection and inflammation. In MS, inflammation in the brain and spinal cord results in the destruction of the nerve covering (myelin) and the nerve fiber itself. Rebif is recombinant human interferon beta-1a developed for treatment of multiple sclerosis (MS).

Deal Structure: In July 2002, Serono and Pfizer announced an agreement to co-promote Serono's multiple sclerosis (MS) treatment Rebif in the United States. Under the terms of the agreement, Pfizer will pay Serono an up front feeof $200 million, will share all commercialization and development costs in theU.S., and will receive a payment based on Rebif sales in the United States.Serono will record all sales, distribute the product in theU.S., and continue to be thesole marketer for Rebif in the rest of the world.

In January 2007, the acquisition of Serono S.A. (now Merck Serono S.A.) by Merck KGaA and the integration of the business with the former Merck KGaA Ethicals Division was completed. Merck Serono is now the division of Merck KGaA which specializes in prescription pharmaceuticals. Its North American business operates in the United States and Canada under EMD Serono.

Partners: Pfizer Inc.

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