03 Oct 2012, BioSpectrum Bureau , BioSpectrum
Singapore: Following the loss of exclusivity of Plavix and Avapro/Avalide in many major markets, multinational companies Sanofi and Bristol-Myers Squibb have restructured their long-term alliance.
Under the revised agreement, which comes into effect from January 1, 2013, BristolMyers Squibb will return to Sanofi its rights to Plavix and Avapro/Avalide in all markets worldwide with the exception of Plavix in the US and Puerto Rico, giving Sanofi sole control and freedom to operate commercially. In exchange, Bristol-Myers Squibb will receive royalty payments on Sanofi's sales of branded and unbranded Plavix worldwide, excluding the US and Puerto Rico, and on sales of branded and unbranded Avapro/Avalide worldwide, in each case through 2018. It will also receive a terminal payment of $200 million from Sanofi in December 2018.
Plavix rights in the US and Puerto Rico will continue unchanged under the terms of the existing agreement through December 2019.
"Bristol-Myers Squibb and Sanofi have had a long and successful collaboration helping patients with cardiovascular disease," said Mr Lamberto Andreotti, CEO, Bristol-Myers Squibb. "This revised agreement simplifies operations and supports BristolMyers Squibb's ability to focus on delivering our promising, innovation-driven R&D portfolio and setting the foundation for future success."
"Our alliance with Bristol-Myers Squibb has been extremely successful and value-generating for both partners," said Mr Hanspeter Spek, president, Global Operations, Sanofi. "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."
In addition, under the terms of the agreement ongoing disputes between the companies related to the alliance have been resolved. The resolution of these disputes includes various commitments by both companies, including a one-time payment of $80 million by BristolMyers Squibb to Sanofi in relation to the Avalide supply disruption in the US in 2011.