BAYER TO ACQUIRE LEVITRA INTERNATIONAL PROMOTION RIGHTS FROM GSK

GlaxoSmithKline (GSK) has agreed to sell the majority of its international co-promotion rights to erectile dysfunction drug Levitra to Bayer for approximately $260 million.

Under the terms of the agreement, Bayer will acquire sole marketing rights to Levitra (vardenafil HCl) for most major European markets and in Asia-Pacific, Africa, Latin America and Canada. GSK and Bayer previously held co-promotion rights to the drug in those regions. The companies jointly launched Levitra in mid-2003.

GSK said there will be no change in marketing strategy in the U.S., where both companies will continue to co-market the drug. There will also be no change to firms' co-promotion arrangement in Italy, where Bayer markets the drug as Levitra and GSK markets it as Vivanza.

"This agreement represents an opportunity for GSK and Bayer to realize the maximum potential value from Levitra," said David Stout, president of GSK's pharmaceutical operations.

The announcement comes in the wake of disappointing Levitra sales. During the third quarter of 2004, the drug generated just $60 million in sales. Pfizer's erectile dysfunction drug Viagra had sales of approximately $305 million during the third quarter and Eli Lilly's Cialis had sales of approximately $154 during the third quarter.