Sanofi Pasteur and MSD, known as Merck in the US and Canada, are planning to terminate their joint venture (JV) that is involved in the development and commercialisation of vaccines in Europe.

The JV, Sanofi Pasteur MSD, in which the companies own a 50% stake each, will be split by the end of this year, upon receiving local labour laws and regulations and regulatory approvals.

Sanofi and MSD plan to integrate their respective European vaccine businesses into their operations.

The companies are planning to independently manage their product portfolios and pursue their own distinct growth strategies in Europe.

Sanofi Pasteur and MSD jointly said: "We are proud of Sanofi Pasteur MSD's successful 20-year history. Our joint venture has achieved considerable success over the past two decades from a public health and commercial perspective.

"After carefully considering our individual strategic priorities, alongside the economic and regulatory environments for vaccine operations in the European Union, we have mutually agreed that it is in our best interests to manage our vaccine product portfolios independently.

"We believe that focusing our efforts on opportunities unique to our respective companies will better position us to drive growth, execute in a more efficient manner and optimise vaccine coverage.

"By bringing vaccines more rapidly to market, both companies would deliver greater value to all stakeholders."

Sanofi Pasteur MSD, created in 1994, develops and commercialises vaccines originating from both the companies' pipelines to improve and promote public health in 19 European countries.

Sanofi Pasteur's vaccines are claimed to provide protection against 20 bacterial and viral diseases.