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news.Sanofi-aventis and Covance have signed definitive agreements, under which Covance will become sanofi-aventis' R&D partner over the next decade.
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As per the agreements, Covance expects to provide drug development services to Sanofi-aventis, with estimated payments ranging from about $1.2bn to $2.2bn.
However, Sanofi-aventis will sell its Porcheville, France and Alnwick, UK sites and facilities to Covance for approximately $25m and Covance will maintain employment on these sites for at least the next five years.
Under the agreements, Sanofi-aventis is expcted to use Covance’s global R&D portfolio of discovery support, toxicology, chemistry, clinical Phase I – IV, central laboratory, and market access services with annual commitments for these services increasing over the next decade.
The agreements include a 10-year sole-source relationship for central laboratory services.
Covance is expected to acquire CMC (Chemistry, Manufacturing and Controls) services with the addition of the Porcheville and Alnwick sites, including preformulation, drug formulation, preclinical and early-stage clinical API (Active Pharmaceutical Ingredient) manufacturing, and radiolabeled chemistry.
The transaction is expected to be completed before the end of the year.