Under the agreements, Kos has acquired the anti-hypertensive products Teveten (eprosartan mesylate) and Teveten HCT (eprosartan mesylate/hydrochlorothiazide) from Biovail and has obtained exclusive sales and marketing rights to Cardizem LA (diltiazem hydrochloride) in the US.
In addition, Kos will obtain commercial rights to the combination product of Cardizem LA and enalapril, currently in formulation development, and the right of first negotiation to two other R&D projects in the cardiovascular/metabolic disease area.
Kos will pay approximately $104 million in cash and will pay Biovail to manufacture and supply Cardizem LA and the Cardizem LA/enalapril product when approved and commercialized. Solvay Pharmaceuticals Marketing and Licensing, which currently manufactures the Teveten products, will supply Kos with these products.
Lastly, Kos intends to offer employment to approximately 200 Biovail employees, including 150 sales representatives.
The transaction is expected to enhance the company’s near-term financial outlook, and will serve as an important bridge for Kos until the introduction of its next internally developed product, the combination of Niaspan and simvastatin.
Kos projects that the three currently commercialized products will increase its previously reported 2005 total revenue projection by approximately 8% to $710-$720 million in 2005.
Teveten lowers blood pressure, Teveten HCT provides double-digit reductions in systolic blood pressure and Cardizem LA is used for hypertension and angina.