Flamel Terminates Licensing Agreement for Genvir and Recovery of Rights

Flamel Technologies S.A. has terminated the license agreement with Biovail Laboratories for Flamel's long-acting acyclovir formulation, Genvir.

The license agreement, which was signed in February 2003, granted a license to Biovail in the U.S. and Canada, subject to initiation by Biovail of certain clinical trials in the U.S. The license agreement provided for termination by Flamel in the event the clinical trials were not initiated by a date set out in the license agreement.