Sepracor, GSK Enter Commercialization Pact

Sepracor and GlaxoSmithKline entered an agreement for the commercialization of Sepracor’s eszopiclone product for all markets outside the U.S., Canada, Mexico and Japan. Sepracor’s eszopiclone, known as Lunesta in the U.S., will be marketed by GSK in these areas as Lunivia for the treatment of insomnia. Under the agreement, Sepracor is entitled to receive an initial payment of $20 million plus success-based milestones totaling $155 million. Sepracor will also receive royalties based on increased product sales and compensation for supplying the product to GSK.

Lunivia is currently under EMEA review for marketing approval under the Centralized Procedure, which allows the EMEA to conduct a single, scientific evaluation on behalf of all EU member states, using experts from national regulatory authorities. Approval of the MAA would authorize the marketing of Lunivia for insomnia in as many as 27 EU member countries.

“GSK is one of the world’s largest pharmaceutical companies, and we are delighted to have established this alliance with such a renowned organization that has a strong presence in the EU and other global markets,” said Adrian Adams, president and chief executive officer of Sepracor. “GSK’s knowledge, experience and success in the central nervous system area, together with its broad commercialization infrastructure, provide an optimal launch platform from which to expand our Lunivia franchise to European and additional international markets.”

Lunesta has been available in the U.S. since April 2005 and had product revenues of approximately $566.8 million in 2006.