Teva (Nasdaq: TEVA) announced on Friday that it reached an agreement with US drug makers Andrx (Nasdaq: ADRX) and Impax (Nasdaq: IPXL) on the launch of the generic version of GlaxoSmithKline’s Wellbutrin and Zyban drugs. The two drugs had US annual sales of over $1.6 billion, Teva said in a statement.
According to Teva, Andrx is entitled to 180-days of marketing exclusivity to market the drugs once GlaxoSmithKline's patent protection ends. Under the exclusivity transfer agreement, Andrx will continue to seek approval of its application to market generic versions. But if Andrx is unable to launch the drugs within a defined period of time, it will allow Impax, a Teva partner, to market them.
The deal states that if Impax launches its products in the 180-day period, it will do so through Teva, with the parties sharing certain payments with Andrx for the sale of the products during that period. If Andrx launches its own products before Impax, Teva and Impax will receive an undisclosed payment for the 180-day period.
Teva president and CEO Israel Makov said, "We are pleased to enter into this agreement with Andrx and Impax. We believe that this agreement will facilitate the introduction of these important treatments at lower prices at the earliest possible time."
Andrx and Impax have both obtained favorable summary judgment decisions that their formulations of the products do not infringe Glaxo's patents. Glaxo, however, has appealed both decisions.
Teva’s Tel Aviv shares were down 1.5% at NIS 248.50 on Sunday morning, in line with the company’s Nasdaq stock, which closed Friday at $55.72.
Published by Globes [online] - www.globes.co.il - on 3 August, 2003