Forest Laboratories, Inc. and Daiichi Sankyo, Inc. Announce the Termination of the AZOR Co-Promotion Agreement
May 12 2008 - 8:45AM
PR Newswire (US)
NEW YORK and PARSIPPANY, N.J., May 12 /PRNewswire-FirstCall/ --
Forest Laboratories, Inc. (NYSE:FRX), a U.S.-based pharmaceutical
company, and Daiichi Sankyo, Inc. today announced that they have
terminated their co-promotion agreement for AZOR(TM)* (amlodipine
and olmesartan medoxomil), Daiichi Sankyo's fixed-dose combination
of two antihypertensives, the calcium channel blocker amlodipine
besylate and the angiotensin receptor blocker olmesartan medoxomil.
Forest will record a one-time charge of $44.1 million which is
composed of a one-time payment to Daiichi Sankyo of $26.6 million
related to the termination and $17.5 million related to the
unamortized portion of the initial upfront payment. (Logo:
http://www.newscom.com/cgi-bin/prnh/20001011/FORESTLOGO ) The AZOR
agreement is the second co-promotion agreement for the two
companies. A previous agreement signed in 2002 by Forest to
co-promote Benicar(R) (olmesartan medoxomil) and Benicar HCT(R)
(olmesartan medoxomil-hydrochlorothiazide) is currently still in
force. That agreement specified a co-promotion period, which has
been extended to end on May 31, 2008, and a residual period where
Forest will continue to receive income from Benicar(R) and Benicar
HCT(R) profits, which doesn't expire until March 31, 2014. Forest
has determined that the resources it has allocated to the AZOR
co-promotion will be better utilized in providing additional
support for Forest's currently marketed products. Beginning July 1,
2008, Daiichi Sankyo will take sole responsibility for the
promotion of AZOR. The company has both expanded its cardiovascular
sales capability in recent years and is adding additional capacity
in preparation of the potential launch of its investigational
anti-platelet agent. Howard Solomon, Chairman and CEO of Forest,
commented: "We have enjoyed a very fruitful partnership with
Daiichi Sankyo since our initial collaboration of Benicar which
began in 2002. Our decision to reallocate resources to our
currently marketed products causes us to forego the opportunity to
continue to participate in the promotion of Daiichi Sankyo's
excellent product AZOR." Solomon continued, "However, Daiichi
Sankyo and Forest's partnership will continue for another six years
during which Forest will have a residual participation in Benicar
and Benicar HCT profits, but will not be actively promoting those
products. The result of terminating Forest's active promotion of
both Benicar and AZOR will make available to Forest the equivalent
of an additional 500-person sales force which Forest requires for
the support of its proprietary products. We greatly admire Daiichi
Sankyo, and we have both benefited from its creative product
development, skillful marketing, and the highest standards of
ethical partnership." Daiichi Sankyo President and CEO Joseph P.
Pieroni said, "Our first co-promotion agreement with Forest
provided us with important additional resources to build our
franchise of Benicar and Benicar HCT into significant products in
the antihypertensive market while we built our own sales force. Our
second co-promotion collaboration for AZOR allowed us to quickly
and comprehensively educate the medical community about this new
combination antihypertensive. Now we can take over full
responsibility for the continued success of these brands." AZOR was
approved by the US Food and Drug Administration September 26, 2007.
Forest will continue to co-promote AZOR until June 30, 2008. Health
care providers with questions regarding AZOR or any Daiichi Sankyo
product should call Daiichi Sankyo at 877 4DSPROD (437-7763). About
Forest Laboratories and Its Products Forest Laboratories is a
U.S.-based pharmaceutical company dedicated to identifying,
developing, and delivering products that make a positive difference
in people's lives. Forest Laboratories' growing product line
includes Lexapro(R) (escitalopram oxalate), an SSRI indicated for
adults for the initial and maintenance treatment of major
depressive disorder and generalized anxiety disorder; Namenda(R)
(memantine HCl), an N-methyl-D-aspartate (NMDA)-receptor antagonist
indicated for the treatment of moderate to severe Alzheimer's
disease; Campral(R)** (acamprosate calcium), indicated in
combination with psychosocial support for the maintenance of
abstinence from alcohol in patients with alcohol dependence who are
abstinent at treatment initiation, and Bystolic(R) (nebivolol), a
beta-adrenergic receptor blocking agent indicated for the treatment
of hypertension. About Daiichi Sankyo, Inc. Daiichi Sankyo, Inc.,
headquartered in Parsippany, New Jersey, is the U.S. subsidiary of
Daiichi Sankyo Co., Ltd., one of Japan's leading pharmaceutical
companies and a global leader in pharmaceutical innovation whose
roots date back to 1899. The company is dedicated to the discovery,
development and commercialization of innovative medicines that
improve the lives of patients throughout the world. The primary
focus of Daiichi Sankyo's research and development is
cardiovascular disease, including therapies for dyslipidemia,
hypertension, diabetes, and acute coronary syndrome. The company is
also pursuing the discovery of new medicines in the areas of
glucose metabolic disorders, infectious diseases, cancer, bone and
joint diseases, and immune disorders. For more information, visit
http://www.dsus.com/. * AZOR is a trademark of Daiichi Sankyo, Inc.
**Campral is a registered trademark of Merck Sante s.a.s., a
subsidiary of Merck KGaA, Darmstadt, Germany. Except for the
historical information contained herein, this release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements involve
a number of risks and uncertainties, including the difficulty of
predicting FDA approvals, the acceptance and demand for new
pharmaceutical products, the impact of competitive products and
pricing, the timely development and launch of new products, and the
risk factors listed from time to time in the Forest Laboratories'
Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and any
subsequent SEC filings.
http://www.newscom.com/cgi-bin/prnh/20001011/FORESTLOGODATASOURCE:
Forest Laboratories, Inc.; Daiichi Sankyo, Inc. CONTACT: Charles E.
Triano, Vice President - Investor Relations of Forest Laboratories,
Inc., +1-212-224-6714, ; Rich Salem, Executive Director Public
Affairs of Daiichi Sankyo, Inc., +1-973-695-8330, Web site:
http://www.frx.com/ http://www.dsus.com/
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