Bristol-Myers Squibb, Sanofi restructure long-term alliance
Published on October 4, 2012 at 3:11 AM
Sanofi (EURONEXT: SAN and NYSE: SNY) and Bristol-Myers
Squibb Company (NYSE: BMY) today announced they have restructured
their successful long-term alliance following the loss of exclusivity of Plavix®
in many major markets.
Under the terms of the revised agreement, which will go into effect
January 1, 2013, Bristol-Myers Squibb will return to Sanofi its rights
to Plavix and Avapro/Avalide in all markets worldwide with
the exception of Plavix in the U.S. 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 U.S. and
Puerto Rico, and on sales of branded and unbranded Avapro/Avalide
worldwide, in each case through 2018, and will receive a terminal
payment of U.S. $200 million from Sanofi in December 2018. Plavix
rights in the U.S. 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 Lamberto
Andreotti, chief executive officer, Bristol-Myers Squibb. "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."
"Our alliance with Bristol-Myers Squibb has been extremely successful
and value-generating for both partners," said 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 Bristol-Myers Squibb to
Sanofi in relation to the Avalide supply disruption in the U.S.