Biovail acquires US marketing rights to depression drug from GSK

Biovail Corporation has reported that its subsidiary Biovail Laboratories International has entered into an agreement to acquire full US commercialization rights to Wellbutrin XL tablets from GlaxoSmithKline.

Under the terms of the agreement, Biovail will pay $510 million to GlaxoSmithKline (GSK) to acquire the full US rights to Wellbutrin XL. The agreement also provides Biovail with the right to launch an authorized generic formulation of Wellbutrin XL. The agreement is subject to Hart-Scott-Rodino regulatory clearance in the US.

The existing agreement between Biovail and GSK as it pertains to countries other than the US remains intact. Biovail will continue to manufacture and supply extended-release bupropion hydrochloride tablets to GSK for distribution in these territories. In Canada, Wellbutrin XL is marketed by the Biovail Pharmaceuticals Canada sales force.

Wellbutrin XL, which is indicated for the treatment of major depressive disorder and seasonal affective disorder, was developed and is manufactured by Biovail and has been distributed by GSK in the US since September 2003.

Bill Wells, CEO of Biovail, said: This acquisition strengthens our existing business and will generate significant cash flows in the near-, mid- and long-term that can be used to further expand our pipeline of development-stage specialty CNS assets thereby accelerating Biovail’s new strategic focus.

When evaluating options to maximize the value of Biovail’s commercial assets, we realized we could deliver significant shareholder value in a very short time period and with low risk by acquiring the US rights to Wellbutrin XL. We have a good track record of managing off-patent branded pharmaceuticals to maximize value, which bodes well for the product’s long-term commercial prospects.