Sanofi and Bristol-Myers Squibb to restructure alliance for 2013
Sanofi and Bristol-Myers Squibb have announced they are restructuring their successful long-term alliance. This announcement follows the loss of exclusivity of two key drugs, blood thinner Plavix and hypertension medicine Avapro/Avalide, and the arrival of generic competition in many major markets.
The agreement to revamp their 15-year-old alliance will become effective as of January 1st, 2013. Under terms of the agreement, Bristol-Myers Squibb (BMS) will return the rights of Plavix and Avapro/Avalide in all markets worldwide to Sanofi, with the exception of Plavix in the US and Puerto Rico. This gives Sanofi sole control and freedom to operate commercially.
In exchange, BMS will receive royalty payments on Sanofi’s sales of branded and unbranded Plavix worldwide (excluding US and Puerto Rico, as mentioned before) through to 2018. In December 2018, BMS will receive a terminal payment of US $200 million from Sanofi.
“Bristol-Myers Squibb and Sanofi have had a long and successful collaboration helping patients with cardiovascular disease. This revised agreement simplifies operations and supports Bristol- Myers Squibb’s ability to focus on delivering our promising, innovation-driven R&,D portfolio and setting the foundation for future success.”
Lamberto Andreotti, Chief Executive Officer, Bristol-Myers Squibb.
In addition, ongoing disputes between the two companies related to the alliance have been resolved.
“Our alliance with Bristol-Myers Squibb has been extremely successful and value-generating for both partners. The revised agreement further supports Sanofi’s strategic priorities while continuing to offer the clinical benefits of these well-established products to millions of patients around the world.”
Hanspeter Spek, President, Global Operations, Sanofi.
Earlier this year, Sanofi predicted a US £1.85 billion dent in net income, due to the impact of generics on Plavix and Avapro, as their patents end. The company is now focusing on emerging markets, diabetes, vaccines and new products to increase growth. Yesterday, the pharma company announced it would buy Genfar, Colombia’s second-largest generic drug manufacturer.
Don't miss your daily pharmaphorum news.
SUBSCRIBE free here.