GlaxoSmithKline and XenoPort mutually Agree to Terminate their Collaboration on Horizant
London UK - XenoPort gains full ownership of Horizant
GlaxoSmithKline (GSK) plc announced today that it has reached an agreement with XenoPort,Inc., to terminate their collaboration concerning Horizant® (gabapentin enacarbil) Extended-Release Tablets, for which GSK had commercialisation rights and certain development rights in the United States.
Under the termination and transition agreement, GSK is returning Horizant rights to XenoPort and providing certain assistance during the transition period ending April 30, 2013, upon mutually agreed terms. The decision to return the asset is aligned with GSK’s ongoing strategy to streamline its portfolio to focus on core franchise opportunities. The agreement also resolves all litigation between the parties. XenoPort acknowledges that GSK fulfilled its contractual obligations on the development, manufacturing and commercialisation of Horizant.
The company recorded a non-core non-cash intangible asset write-off for the third quarter of 2012 of £103 million pre-tax, and no further one-off charges related to Horizant are expected.
During the transition period, GSK will continue to exclusively commercialise, promote, manufacture and distribute Horizant. GSK has also agreed to purchase $20 million of common stock in XenoPort at a 12.5 percent premium to the10-day average stock price prior to October 31st. In addition, during a six-month period after the effective date of the agreement, XenoPort has the option whereby GSK would purchase an additional $20 million in equity at a 12.5 percent premium of the 10-day average stock price prior to the day XenoPort notifies GSK of its intent to elect the option.
Horizant will continue to be available to patients.
GlaxoSmithKline – one of the world’s leading research-based pharmaceutical and healthcare companies – is committed to improving the quality of human life by enabling people to do more, feel better and live longer. For further information please visit www.gsk.com
Cautionary statement regarding forward-looking statements
Under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, GSK cautions investors that any forward-looking statements or projections made by GSK, including those made in this announcement, are subject to risks and uncertainties that may cause actual results to differ materially from those projected. Factors that may affect GSK’ s operations are described under ’Risk factors’ in the ’Financial review & risk’ section in the company’s Annual Report 2011 included as exhibit 15.2 to the company’s Annual Report on Form 20-F for 2011.
Horizant is a registered trademark of XenoPort, Inc.
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