GLAXOSMITHKLINE AND BAYER AMEND LEVITRA CO-PROMOTION DEAL

UK-based drug major GlaxoSmithKline (GSK) has reportedly returned much of its co-promotion rights for erectile dysfunction treatment Levitra (vardenafil) to Germany's Bayer Healthcare. The deal, which involves a cash consideration of EUR280mn (US$370.36mn), will affect markets in Europe, Asia Pacific, Africa, Latin America and Canada, although no changes will occur in countries where the drug is sold by only one of the two partner companies. The exception will be Italy, where GSK distributes the drug as Vivanza, while Bayer markets it using the Levitra brand. Meanwhile, GSK is also to reduce its R&D spending on the drug by some EUR15mn (US$19.84mn).

GSK insists that it will continue to actively market the drug in 27 countries, although worldwide sales have proved disappointing, totalling only US$131mn in 2003. In the same year, Pfizer's Viagra earned US$1.88bn, and Eli Lilly's Cialis generated revenue of about US$203mn. Pfizer claims an 82% share of the global erectile dysfunction market, which has underperformed expectations in recent months.