Glaxo to sell Wellbutrin rights?

[napalm]

I've just heard the GlaxoSmithKline is about to sell rights to make Wellbutrin. I don't have the details though. What's up with this news?

[zen]

Well, you've heard right. GSK is selling its US commercial rights for Wellbutrin to Biovail for $510 million!

[Peruvian]

Wow, I thought Wellbutrin was GSK's largest selling drug??? Why are they selling?

[MarissaS]

Well, Wellbutrin lost patent protection two years ago, that's why!

[LiaAtha]

If that's the case, then why did Biovail buy it??? Seems to me that they can manufacture something similar now that it's out of patent protection?

[LiveWIRE]

Well that's true. But it's also because Biovail has been making its own version of Wellbutrin and splitting the proceeds with GSK since 2003.

[LiveWIRE]

I think it's a win-win sale. GSK would reduce exposure in the US, while Biovail can continue selling its once-a-day Wellbutrin in the states. It would also mean additional revenue for Biovail.

[BroSantino]

It doesn't make sense though. I've seen generic versions of Wellbutrin come up in drug stores. Paying $510 million doesn't make sense!

[Blender]

No that's not correct. As it is, Biovail stands to gain from the acquisition since they don't have to worry about licensing anymore.

[julie20099]

GlaxoSmithKline has entered into an agreement to divest full commercial rights to Wellbutrin XL(R) in the US to BLI for $510 million. Under the terms of the agreement, GlaxoSmithKline would transfer its US New Drug Application (NDA) and license the Wellbutrin XL trademark to Biovail in the US. GSK would retain existing rights to Wellbutrin XL, excluding Canada, for countries outside the US.