ALK shares slide as Merck & Co ends partnership

27 July 2016

US pharma giant Merck & CO (NYSE: MRK) has told Denmark's ALK-Abelló (ALKB: DC) that it plans to end their partnership, causing the share price of the Denmark-based allergy specialist to drop by more than 18% on Wednesday morning.

Following a review of Merck & Co’s strategic priorities and after partnership sales for the last two years fell below expectations, the New Jersey-based company informed its partner of the news, the timing of which was ‘unexpected’, according to ALK acting chief executive Steen Riisgaard.

The agreement between the two companies, which covers the USA, Canada and Mexico, was first signed in 2007 and has seen the successful registration of Grastek and Ragwitek for grass and ragweed allergic rhinitis, respectively.

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