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GLAXO AND WARNER-LAMBERT ANNOUNCE OTC JOINT VENTURE

 LONDON, July 28 /PRNewswire/ -- Glaxo Holdings p.l.c. (NYSE: GLX) and Warner-Lambert Company (NYSE: WLA) today announced that they have signed a letter of intent to form a worldwide joint venture to develop, seek approval for and market over-the-counter (OTC) versions of Glaxo prescription drugs, including the leading ulcer treatment Zantac. The joint venture will initially concentrate on developing Zantac for sale as an OTC product in the United States and other major markets (excluding Japan). The OTC product will be at a lower dose than the prescription version, with an expected indication for the treatment of conditions such as episodic heartburn.
 The proposed agreement will include rights to the Zantac trademark for approved OTC claims and dosage form. Zantac is the world's largest selling prescription medicine with sales of 1.8 billion pounds ($3.2 billion U.S.) in the year to June 30, 1992.
 Glaxo Chairman Sir Paul Girolami said: "For Glaxo the aim of this important joint venture is to maximize the potential of the OTC use of our products while allowing us to continue to focus sharply on discovering, developing and marketing prescription medicines, which is our mission. The joint venture combines Glaxo's skills in drug discovery and development with Warner-Lambert's OTC development skills and worldwide marketing networks."
 Warner-Lambert Chairman Melvin R. Goodes said: "This is an excellent example of the business building alliances we've been pursuing over the past year. It represents a major opportunity for both companies and promises to extend the therapeutic benefits of Glaxo's rich product pipeline to many more people."
 The letter of intent will be followed by formal agreements to be completed later this year. Under these agreements, Warner-Lambert and Glaxo will form a partnership in the U.S. and a series of joint venture companies in other countries to complete the development of, seek approval for and then market, Glaxo's prescription to OTC candidates. Warner-Lambert and Glaxo will share development costs and profits equally. Glaxo will receive a royalty on all OTC sales by the joint venture, which will be under the direction of a management committee comprising three members from each company. Day-to-day management will be the responsibility of Warner-Lambert and the joint venture's OTC products will be sold by the Warner-Lambert marketing and sales organizations.
 Glaxo has agreed that Warner-Lambert's participation in the joint venture will be through the Warner-Wellcome Consumer Health Products venture announced by Warner-Lambert and Wellcome today.
 Glaxo is an integrated research-based group of companies whose corporate purpose is the discovery, development, manufacture and marketing of safe, effective medicines of the highest quality.
 -0- 7/28/93
 /CONTACT: (Analyst-Investor) Penney Burnett, CFA, 212-308-5185, or Sheryl Sumner, 011-44-71-493-4060; (Media) Geoffrey Potter or Martin Sutton, 011-44-71-493-4060, all of Glaxo Holdings p.l.c./
 (GLX WLA)


CO: Glaxo Holdings p.l.c.; Warner-Lambert Company ST: North Carolina IN: MTC SU: JVN

CM -- CH001 -- 6633 07/28/93 09:10 EDT
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Publication:PR Newswire
Date:Jul 28, 1993
Words:484
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