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.
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 ad
|SOURCE Forest Laboratories, Inc.; Daiichi Sankyo, Inc.|
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