NEW YORK and PARSIPPANY, N.J., May 12, 2008
/PRNewswire-FirstCall/ — Forest Laboratories, Inc. , a U.S.-based
pharmaceutical company, and Daiichi Sankyo, Inc. today announced
that they have terminated their co-promotion agreement for
AZOR(TM)* (amlodipine and olmesartan medoxomil), Daiichi Sankyo’s
fixed-dose combination of two antihypertensives, the calcium
channel blocker amlodipine besylate and the angiotensin receptor
blocker 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 termination and $17.5
million related to the unamortized portion of the initial upfront
payment.
The AZOR agreement is the second co-promotion agreement for the
two companies. A previous agreement signed in 2002 by Forest to
co-promote Benicar(R) (olmesartan medoxomil) and Benicar HCT(R)
(olmesartan medoxomil-hydrochlorothiazide) is currently still in
force. That agreement specified a co-promotion period, which has
been extended to end on May 31, 2008, and a residual period where
Forest will continue to receive income from Benicar(R) and Benicar
HCT(R) profits, which doesn’t expire until March 31, 2014.
Forest has determined that the resources it has allocated to the
AZOR co-promotion will be better utilized in providing additional
support for Forest’s currently marketed products.
Beginning July 1, 2008, Daiichi Sankyo will take sole
responsibility for the promotion of AZOR. The company has both
expanded its cardiovascular sales capability in recent years and is
adding additional capacity in preparation of the potential launch
of its investigational anti-platelet agent.
Howard Solomon, Chairman and CEO of Forest, commented: “We have
enjoyed a very fruitful partnership with Daiichi Sankyo since our
initial collaboration of Benicar which began in 2002. Our decision
to reallocate resources to our currently marketed products causes
us to forego the opportunity to continue to participate in the
promotion of Daiichi Sankyo’s excellent product AZOR.”
Solomon continued, “However, Daiichi Sankyo and Forest’s
partnership will continue for another six years during which Forest
will have a residual participation in Benicar and Benicar HCT
profits, but will not be actively promoting those products. The
result of terminating Forest’s active promotion of both Benicar and
AZOR will make available to Forest the equivalent of an additional
500-person sales force which Forest requires for the support of its
proprietary products. We greatly admire Daiichi Sankyo, and we have
both benefited from its creative product development, skillful
marketing, and the highest standards of ethical partnership.”
Daiichi Sankyo President and CEO Joseph P. Pieroni said, “Our
first co-promotion agreement with Forest provided us with important
additional resources to build our franchise of Benicar and Benicar
HCT into significant products in the antihypertensive market while
we built our own sales force. Our second co-promotion collaboration
for AZOR allowed us to quickly and comprehensively educate the
medical community about this new combination antihypertensive. Now
we can take over full responsibility for the continued success of
these brands.”
AZOR was approved by the US Food and Drug Administration
September 26, 2007. Forest will continue to co-promote AZOR until
June 30, 2008. Health care providers with questions regarding AZOR
or any Daiichi Sankyo product should call Daiichi Sankyo at 877
4DSPROD (437-7763).
About Forest Laboratories and Its Products
Forest Laboratories is a U.S.-based pharmaceutical company
dedicated to identifying, developing, and delivering products that
make a positive difference in people’s lives. Forest Laboratories’
growing product line includes Lexapro(R) (escitalopram oxalate), an
SSRI indicated for adults for the initial and maintenance treatment
of major depressive disorder and generalized anxiety disorder;
Namenda(R) (memantine HCl), an N-methyl-D-aspartate (NMDA)-receptor
antagonist indicated for the treatment of moderate to severe
Alzheimer’s disease; Campral(R)** (acamprosate calcium), indicated
in combination with psychosocial support for the maintenance of
abstinence from alcohol in patients with alcohol dependence who are
abstinent at treatment initiation, and Bystolic(R) (nebivolol), a
beta-adrenergic receptor blocking agent indicated for the treatment
of hypertension.
About Daiichi Sankyo, Inc.
Daiichi Sankyo, Inc., headquartered in Parsippany, New Jersey,
is the U.S. subsidiary of Daiichi Sankyo Co., Ltd., one of Japan’s
leading pharmaceutical companies and a global leader in
pharmaceutical innovation whose roots date back to 1899. The
company is dedicated to the discovery, development and
commercialization of innovative medicines that improve the lives of
patients throughout the world. The primary focus of Daiichi
Sankyo’s research and development is cardiovascular disease,
including therapies for dyslipidemia, hypertension, diabetes, and
acute coronary syndrome. The company is also pursuing the discovery
of new medicines in the areas of glucose metabolic disorders,
infectious diseases, cancer, bone and joint diseases, and immune
disorders. For more information, visit www.dsus.com.

* AZOR is a trademark of Daiichi Sankyo, Inc.

**Campral is a registered trademark of Merck Sante s.a.s., a subsidiary of

Merck KGaA, Darmstadt, Germany.

Except for the historical information contained herein, this
release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. These
statements involve a number of risks and uncertainties, including
the difficulty of predicting FDA approvals, the acceptance and
demand for new pharmaceutical products, the impact of competitive
products and pricing, the timely development and launch of new
products, and the risk factors listed from time to time in the
Forest Laboratories’ Annual Report on Form 10-K, Quarterly Reports
on Form 10-Q, and any subsequent SEC filings.
CONTACT: Charles E. Triano, Vice President - Investor Relations
of ForestLaboratories, Inc., 1-212-224-6714, ; Rich
Salem,Executive Director Public Affairs of Daiichi Sankyo, Inc.,
1-973-695-8330, Charles.Triano@frx.com
rsalem@dsus.com
Web site: http://www.frx.com/http://www.dsus.com/
Ticker Symbol: (NYSE:FRX)
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