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.
SOURCE Forest Laboratories, Inc.; Daiichi Sankyo, Inc.
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Related links:
http://www.frx.com
http://www.dsus.com
Photo Notes:http://www.newscom.com/cgi-bin/prnh/20001011/FORESTLOGO
CONTACT:
Charles E. Triano, Vice President - Investor
Relations of Forest Laboratories, Inc., +1-212-224-6714,
Charles.Triano@frx.com; Rich Salem, Executive Director Public
Affairs of Daiichi Sankyo, Inc., +1-973-695-8330, rsalem@dsus.com
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