Sanofi and Bristol-Myers Squibb (BMS) have restructured their alliance following the loss of exclusivity of Plavix and Avapro/Avalide in many markets.
Under the terms of the revised agreement, which will go into effect Jan. 1, 2013, BMS will return to Paris-based Sanofi its rights to Plavix and Avapro/Avalide in all markets worldwide with the exception of Plavix in the U.S. and Puerto Rico, giving Sanofi sole control and freedom to operate commercially.
In exchange, New York City-based BMS will receive royalty payments on Sanofi’s sales of branded and unbranded Plavix worldwide, excluding the U.S. and Puerto Rico, and on sales of branded and unbranded Avapro/Avalide worldwide, in each case through 2018. It also will receive a terminal payment of $200 million from Sanofi in December 2018.
Plavix rights in the U.S. and Puerto Rico will continue unchanged under the terms of the existing agreement through December 2019.
In addition, under the terms of the agreement, ongoing disputes between the companies related to the alliance have been resolved. The resolution of these disputes includes various commitments by both companies, including a one-time payment of $80 million by BMS to Sanofi in relation to the Avalide supply disruption in the U.S. in 2011.