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Schering-Plough Announces Changes to its Global Collaboration with Novartis to Develop Combination Therapies for Asthma and COPD
Date:5/18/2009

expanded in August 2006 to include the joint development and commercialization of a fixed-dose combination of indacaterol and mometasone furoate. The collaboration has completed the mometasone furoate/formoterol combination's phase II (asthma, COPD) and phase III (asthma) development, while phase III (COPD) continues. Meanwhile, the indacaterol/mometasone combination is in phase II development (asthma, COPD).

Combination products containing inhaled corticosteroids and long-acting beta2-agonists are the largest segment of the worldwide market for asthma and COPD medications, in terms of dollar sales.(1)

Under the revised agreements, Schering-Plough will assume the remaining development and commercialization costs of the mometasone furoate/formoterol fixed-combination product which will utilize a meter-dose inhaler device while Novartis will assume the remaining development and future commercialization costs of the indacaterol/mometasone furoate combination including the Schering-Plough TWISTHALER(R) multi-dose dry powder inhaler device. There will be a royalty sharing arrangement based on sales. Schering-Plough will recognize sales worldwide for mometasone furoate/formoterol upon commercialization. In addition, Schering-Plough will receive royalties and other compensation for Novartis' use of the Schering-Plough TWISTHALER device.

This transaction is subject to approval in accordance with the Hart-Scott-Rodino Act.

Background on Schering-Plough and Novartis respiratory collaborations

In October 2002, Schering-Plough and Novartis announced an agreement giving Schering-Plough exclusive U.S. distribution and marketing rights to Novartis' FORADIL AEROLIZER(R). In April 2003, the two companies announced an agreement for the joint worldwide development and marketing of a new combination treatment of the active ingredients in Schering-Plough's ASMANEX and Novartis' FORADIL.


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