GlaxoSmithKline to Divest US Rights for Wellbutrin XL(R) to Biovail for $510 Million
May 06 2009 - 6:00AM
PR Newswire (US)
RESEARCH TRIANGLE PARK, N.C., May 6 /PRNewswire-FirstCall/ --
GlaxoSmithKline plc (NYSE:GSK) today announced that it has entered
into an agreement to divest full commercial rights to Wellbutrin
XL(R) in the United States to Biovail International Laboratories
SRL, a subsidiary of Biovail Corporation (NYSE, TSX: BVF), for $510
million (euro 340 million). The agreement is subject to
Hart-Scott-Rodino regulatory clearance in the United States.
Generic competition to Wellbutrin XL began at the end of 2006 for
the 300mg tablet and during the second quarter of 2008 for the
150mg tablet. US sales of Wellbutrin XL in the first quarter of
2009 were euro 45 million (-70%). "We are actively reshaping our US
business and managing the transition occurring in our product
portfolio," said Deirdre Connelly, President North American
Pharmaceuticals, GlaxoSmithKline. "This transaction is one of a
series of actions we are taking to maximize the value of our
current assets and to enable us to resource and invest in new
products and upcoming launches." Under the terms of the agreement,
GSK will transfer the US NDA and license the Wellbutrin XL
trademark to Biovail for use in the US. GSK will retain existing
rights to Wellbutrin XL (excluding Canada) for countries outside
the US. Sales of Wellbutrin XL outside the US were euro 7 million
in the first quarter of 2009. GSK expects to record a pre-tax gain
of approximately euro 340 million in Other Operating Income as a
result of this divestment. The company now expects the combined
total of Other Operating Income and profit on disposal of interests
in associates to be around euro 700 million in 2009. Wellbutrin XL
(bupropion hydrochloride extended-release tablets) is indicated for
the treatment of major depressive disorder and seasonal affective
disorder. It was developed by Biovail and has been distributed by
GSK in the United States since September 2003. GlaxoSmithKline -
one of the world's leading research-based pharmaceutical and
healthcare companies - is committed to improving the quality of
human life by enabling people to do more, feel better and live
longer. For further information please visit http://www.gsk.com/
Cautionary statement regarding forward-looking statements Under the
safe harbor provisions of the U.S. Private Securities Litigation
Reform Act of 1995, GSK cautions investors that any forward-looking
statements or projections made by GSK, including those made in this
announcement, are subject to risks and uncertainties that may cause
actual results to differ materially from those projected. Factors
that may affect GSK' s operations are described under 'Risk
Factors' in the 'Business Review' in the company' s Annual Report
on Form 20-F for 2008. Trademarks Brand names appearing in italics
throughout this document are trademarks of GSK. DATASOURCE:
GlaxoSmithKline plc CONTACT: UK Media: Philip Thomson, David
Outhwaite or Stephen Rea, all at +020-8047-5502; or for US Media:
Mary Anne Rhyne, or Kevin Colgan, both at +1-919-483-2839; or for
European Analysts-Investors: David Mawdsley, +020-8047-5564, or
Sally Ferguson, +020-8047-5543, or Gary Davies, +020-8047-5503; or
for US Analysts-Investors: Tom Curry, +1-215-751-5419, or Jen Hill
Baxter, +1-215-751-7002, all of GlaxoSmithKline Web Site:
http://www.gsk.com/
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