Forest endures $44M loss to cut ties with Daiichi
Forest Laboratories and Daiichi Sankyo have terminated their co-promotion agreement for Azor, Daiichi’s fixed-dose combination of the two antihypertensive drugs amlodipine and olmesartan medoxomil.
Forest will record a one-time charge of $44.1 million which is composed of a one-time payment to Daiichi Sankyo of $26.6 million related to the agreement termination and $17.5 million related to the unamortized portion of the initial upfront payment, the companies said.
Forest said it has determined that the resources allocated to the Azor co-promotion will be better utilized in providing additional support for Forest’s currently marketed products.
The Azor agreement is the second co-promotion agreement for the New York City-based Forest and the Tokyo-based Daiichi.
A previous agreement signed in 2002 by Forest to co-promote Benicar (olmesartan medoxomil) and Benicar HCT (olmesartan medoxomil-hydrochlorothiazide) is currently still in force. The agreement also specified a co-promotion period, which has been extended to end on May 31, and a residual period where Forest will continue to receive income from Benicar and Benicar HCT profits, which does not expire until March 31, 2014.
Forest will record a one-time charge of $44.1 million which is composed of a one-time payment to Daiichi Sankyo of $26.6 million related to the agreement termination and $17.5 million related to the unamortized portion of the initial upfront payment, the companies said.
Forest said it has determined that the resources allocated to the Azor co-promotion will be better utilized in providing additional support for Forest’s currently marketed products.
The Azor agreement is the second co-promotion agreement for the New York City-based Forest and the Tokyo-based Daiichi.
A previous agreement signed in 2002 by Forest to co-promote Benicar (olmesartan medoxomil) and Benicar HCT (olmesartan medoxomil-hydrochlorothiazide) is currently still in force. The agreement also specified a co-promotion period, which has been extended to end on May 31, and a residual period where Forest will continue to receive income from Benicar and Benicar HCT profits, which does not expire until March 31, 2014.