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news.The co-promotion rights to GlaxoSmithKline's impotence drug Levitra have been transferred back to Bayer HealthCare in certain markets outside the US, impacting major markets in Europe, Asia Pacific, Africa, Latin America and Canada where the product is currently co-promoted by the two companies.
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There is no change in the US arrangement under which GSK and Bayer (through its distributor Schering-Plough) now co-promote Levitra (vardenafil HCl). 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 E208 million 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 E118 million on earnings before interest and taxes (EBIT) in the first quarter of 2005. The E90 million difference results from the offsetting of one-time payments already made.
“Today’s decision to buy back Levitra co-promotion rights is a logical step to enhance Bayer HealthCare’s Pharmaceuticals group in Europe, Latin America and Asia,” explained Wolfgang Plischke, head of Bayer HealthCare’s pharmaceuticals division.