Forest, Daiichi End Co-Promotion Pact

Forest Laboratories and Daiichi Sankyo have terminated their co-promotion agreement for AZOR (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. Daiichi Sankyo will receive a one-time payment of $44.1 million from Forest Labs related to the termination. Beginning July 1, 2008, Daiichi Sankyo will be responsible for the promotion of AZOR.
   
A second agreement between the two companies, under which Forest co-promotes Benicar and Benicar HCT, has been extended to end on May 31, 2008. Also, there will be a residual period where Forest will continue to receive income from Benicar and Benicar HCT profits, which is not set to expire until March 31, 2014.
   
Howard Solomon, chairman and chief executive officer 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.”
   
Daiichi Sankyo president and chief executive officer, 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.”