Forest Laboratories Inc. ended its agreement with Daiichi Sankyo Co Ltd to help promote Sankyo's pill Azor for blood-pressure, the companies said in a press release.
New York- based Forest will record a one time charge of $44.1 million separated in one payment of $26.6 million to Daiichi as a termination fee and an additional $17.5 million for its initial payment under the agreement.
Daiichi's Azor is a combination of two antihypertensives, Benicar and Pfizer's active ingredient in Norvasc. It was approved for use alone or in combination with blood-pressure treatments by U.S. Food and Drug Administration in September 2007. Daiichi received a payment from Forest of $20 million for the right to promote the drug in the market.
Forest will also stop marketing Daiichi's older blood-pressure pill Benicar by May 31, 2008 but will continue to receive income from Benicar profits until May 31, 2014. By terminating active promotion of both Benicar and Azor, Forest will free 500 sales person to promote its own products.
Forest will continue to co-promote AZOR until June 30, 2008 and Daiichi will take solely responsibility for the promotion of Azor beginning July 1, 2008.
The Japanese company is collaborating with Eli Lilly and Co. for prasugrel, a blood-clot treatment which is currently under regulatory examination and its estimated to sell largely if it is approved.
Shares of Forest Laboratories closed 0.88 percent up at $34.20 on the New York stock Exchange composite trading on Monday.