Friday, 07 September 2007
Schering-Plough (SGP): Select Joint Ventures, Partnerships, and Alliances
Select Joint Ventures, Partnerships, and Alliances with Big Pharma
Schering-Plough and Bayer – In September 2004 Bayer HeathCare entered into a strategic alliance with Schering-Plough, under the terms of which Bayer's primary care pharmaceutical products are to be marketed and distributed by Schering-Plough in the United States. According to a Schering-Plough press release, "Schering-Plough will undertake Bayer's marketing and sales activities in the United States and Puerto Rico for all of its primary care products, including AVELOX and CIPRO in the antibiotics category, the cardiovascular product ADALAT (nifedipine) and some other smaller, established primary care Bayer products. Schering-Plough will pay Bayer a substantial royalty based on net sales of these products. Schering-Plough will also understake Bayer's U.S. commercialization activities for the erectile dysfunction medicine LEVITRA under Bayer's existing global co-promotion agreement and will jointly manage the business in the United States with GlaxoSmithKline PLC. Schering-Plough and Bayer will share Bayer's portion of the profits on the U.S. sales of LEVITRA. A substantial number of high-performing Bayer sales representatives and marketing personnel are expected to be integrated into Schering-Plough's pharmaceutical organization in the United States and Puerto Rico." http://www.schering-plough.com/schering_plough/news/release.jsp?releaseID=612378
In Japan, Schering-Plough's and Bayer's local organizations will co-promote Schering-Plough's cholesterol treatment ZETIA, but will otherwise remain independent.
In addition, the agreement gives Bayer rights to promote certain Schering-Plough cancer products in the United States and key European markets for a defined period of time in order to supplement efforts by Schering-Plough's oncology salespeople.
Schering-Plough and Millenium – In July 2005 the two companies restructured a pre-existing partnership. As of July 2005, Schering-Plough exclusively develops and commercializes INTEGRILIN in areas outside of Europe and pays Millennium royalties. Millennium's 2003 third quarter report states that "Co-promotion revenue, based on worldwide sales of INTEGRILIN® (eptifibatide) Injection, was $47.9 million for the quarter ended September 30, 2003, compared to $45.0 million for the same period in 2002. Worldwide sales of INTEGRILIN for the quarter ended September 30, 2003 were $79.2 million, as provided to Millennium by Schering-Plough Corporation. Millennium-Schering sales force for INTEGRILIN® (eptifibatide) Injection Both parties share the revenue and expenses related to U.S. product sales and Schering-Plough pays Millennium royalties on sales outside of the U.S. Based on recent third party audit reports for August 2003, INTEGRILIN continues to be the U.S. market leader both in patient share and dollar share for GP IIb- IIIa inhibitors, with approximately 71 percent and 56 percent, respectively, of the U.S. market." http://investor.millennium.com/phoenix.zhtml?c=80159&p=irol-newsArticle_Print&ID=459021&highlight=
Schering-Plough and Novo Nordisk – Prandin – In January 1998, these two companies signed a multi-year commercialization alliance for Novo Nordisk's oral anti-diabetic agent, Prandin. Financial terms were undisclosed. See also: http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/1-28-98/403333&EDATE
Schering-Plough, Bayer, and GlaxoSmithKline – Levitra – Schering-Plough and GSK market Levitra, developed by Bayer and GSK, in the United States following Schering-Plough and Bayer AG's commercialization alliance in September 2004. According to an SEC 8-K report, "Schering-Plough and Bayer will share Bayer's portion of the profits on the U.S. sales of LEVITRA." http://www.secinfo.com/dsvr4.1aWe.c.htm
Schering-Plough and Novartis – Are involved in a development and commercialization alliance to produce a new fixed-dose combination asthma medication to compete with GSK and AstraZeneca in a market predicted to reach $12.2 billion by 2015. http://www.pharmaceutical-business-review.com/article_feature.asp?guid=CFCF5F1A-1366-48F7-A39E-D9A01A9449C9
According to Medical News Today, "Novartis and Schering-Plough will share the costs of developing the indacaterol-mometasone combination product. No initial payments will be made by either party." http://www.medicalnewstoday.com/articles/50031.php
Select Joint Ventures, Partnerships and Alliances with Small Pharma
Schering-Plough and Anacor – In February 2007 Schering-Plough entered into a development and commercialization alliance with Anacor for an antifungal known as AN2690. According to an Anacor press release, "Schering-Plough paid us a $40 million, non-refundable, non-creditable up-front fee in March 2007, and we have the right to require Schering-Plough to purchase up to $10 million of our capital stock. In addition to assuming sole responsibility for the costs of development and commercialization of AN2690, Schering-Plough is obligated to make payments to us of up to $505 million if certain development, regulatory and commercial milestones for onychomycosis are met. Schering-Plough is also obligated to pay us additional fees for each additional indication for which Schering-Plough develops AN2690 treatments if certain milestones are achieved. Schering-Plough is further obligated to pay us double-digit royalties on annual net sales of AN2690 for all indications in jurisdictions where there is a valid patent claim covering the product and lesser royalties for AN2690 sales in jurisdictions where there is no valid patent claim."
http://www.anacor.com/company/strategic_alliances.htm