10th Jan 2005 07:00
GlaxoSmithKline PLC10 January 2005 GSK's Levitra Co-Promotion Rights Transferred Back to Bayer in Most MajorMarkets Outside the U.S. London, UK, 10 January 2005 - GlaxoSmithKline plc (GSK) (LSE and NYSE: GSK) andBayer HealthCare today announced an agreement under which GSK's Levitra(R)(vardenafil HCl) co-promotion rights have transferred back to Bayer in certainmarkets outside the U.S. This agreement impacts major markets in Europe, AsiaPacific, Africa, Latin America and Canada where the product is currentlyco-promoted by Bayer and GSK. There is no change in the U.S. arrangement under which GSK and Bayer (throughits distributor Schering-Plough) now co-promote Levitra. Similarly, there willbe no change to the co-marketing arrangement in Italy where Bayer markets theproduct as Levitra(R) and GSK markets it as Vivanza(R), or in countries whereone of the companies markets the product exclusively. Under the terms of the agreement, GSK is transferring its European andInternational co-promotion rights of Levitra to Bayer for a cash considerationof Euro 208m. Also, GSK's share of future R&D expenditure on Levitra will bereduced by up to Euro 15m. "Today's decision to buy back Levitra co-promotion rights is a logical step toenhance Bayer HealthCare's Pharmaceuticals group in Europe, Latin America andAsia where we have a strong primary care organization with the capacity and thecommitment to fully maximize the potential of our primary care portfolio, whichincludes Levitra," explained Wolfgang Plischke, Head of Bayer HealthCare'sPharmaceuticals Division. David Stout, President, Pharmaceutical Operations for GlaxoSmithKline, said, "This agreement represents an opportunity for GSK and Bayer to realise themaximum potential value from Levitra. GSK will continue to be actively involvedin marketing the product in the US, Italy and 25 other countries worldwide, andboth companies remain firmly committed to its commercial success. Therelationship between GSK and Bayer remains strong." About GSK:GlaxoSmithKline - one of the world's leading research-based pharmaceutical andhealthcare companies - is committed to improving the quality of human life byenabling people to do more, feel better and live longer. Cautionary statement regarding forward-looking statements Under the safe harbour provisions of the US Private Securities Litigation ReformAct of 1995, the company cautions investors that any forward-looking statementsor projections made by the company, including those made in this Announcement,are subject to risks and uncertainties that may cause actual results to differmaterially from those projected. Factors that may affect the Group's operationsare described under 'Risk Factors' in the Operating and Financial Review andProspects in the company's Annual Report on Form 20-F for 2003. Enquiries: UK Media enquiries: Philip Thomson (020) 8047 5502 David Mawdsley (020) 8047 5502 Chris Hunter-Ward (020) 8047 5502 US Media enquiries: Nancy Pekarek (215) 751 7709 Mary Anne Rhyne (919) 483 2839 Patricia Seif (215) 751 7709 European Analyst/Investor enquiries: Duncan Learmouth (020) 8047 5540 Anita Kidgell (020) 8047 5542 US Analyst/ Investor enquiries: Frank Murdolo (215) 751 7002 Tom Curry (215) 751 5419 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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