GSK's Levitra Co-Promotion Rights Transferred Back to Bayer in Most Major Markets Outside the U.S.
Bayer HealthCare (BHC) and GlaxoSmithKline plc (GSK) announced an agreement under which GSK's Levitra® (vardenafil HCl) co-promotion rights have transferred back to Bayer in certain markets outside the U.S. This agreement impacts major markets in Europe, Asia Pacific, Africa, Latin America and Canada where the product is currently co-promoted by Bayer and GSK.
There is no change in the U.S. arrangement under which GSK and Bayer (through its distributor Schering-Plough) now co-promote Levitra. Similarly, there will be no change to the co-marketing arrangement in Italy where Bayer markets the product as Levitra® and GSK markets it as Vivanza®, or in countries where one of the companies markets the product exclusively.
Under the terms of the agreement, Bayer will pay 208 million euros to buy back European and international co-promotion rights from GSK. Bayer expects the transaction to add to its earnings in 2006, and to have an estimated negative impact of 118 million euros on earnings before interest and taxes (EBIT) in the first quarter of 2005. The 90 million-euro difference results from the offsetting of one-time payments already made.
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