Apr 5 2010
Warner Chilcott plc (Nasdaq: WCRX) and sanofi-aventis (EURONEXT: SAN and NYSE: SNY) announced today an amendment to the Actonel® global collaboration agreement with respect to the parties' arrangement in the United States and Puerto Rico. Under the terms of the amendment, Warner Chilcott will take full operational control over the promotion, marketing and R&D decisions for Actonel in the United States and Puerto Rico, and will assume responsibility for all associated costs relating to those activities. Prior to the amendment, Warner Chilcott shared such costs with sanofi-aventis in these territories. In return, sanofi-aventis will receive, as part of the global collaboration payments between the parties, collaboration payments from Warner Chilcott based on an agreed upon percentage of U.S. and PR net sales for the remainder of the term of the collaboration agreement, which expires at the end of 2014. As part of the amendment, a number of sales representatives currently promoting Actonel for sanofi-aventis in the United States are expected to join the Warner Chilcott sales force.
"The amendment to the collaboration agreement will enable Warner Chilcott to assume full control over the promotion and marketing of the Actonel brand in the United States," stated Roger Boissonneault, President and Chief Executive Officer of Warner Chilcott. "This will allow us improved flexibility to adjust our promotional plans in the U.S. as we prepare for the potential launch of the next generation Actonel product."
Under current assumptions, the amendment to the collaboration agreement is expected to be earnings neutral for Warner Chilcott in 2010 as the additional costs that Warner Chilcott will assume under the amended agreement are expected to be offset by the decrease in anticipated annual collaboration payments to sanofi-aventis.
All other aspects of the global collaboration agreement remain in effect.