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|October 01, 2004 5:18 p.m.|
|Teva And Biovail Announce Resolution Of Arbitration Proceedings; Expansion Of Relationship|
Jerusalem, Israel, October 1, 2004 - Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA) and Biovail Corporation (NYSE:BVF) (TSX:BVF) announced today that the pending arbitration between the two companies relating to a dispute over their existing agreement has been amicably resolved in its entirety, with each side granting a full release to the other in respect of the subject matter of that arbitration. In addition, the companies have expanded their business relationship for controlled release generic products and active raw materials. Under agreements entered into by their respective subsidiaries, Biovail has granted Teva a four-year extension to the ten year product-by-product supply terms for each of the currently marketed products covered by the exclusive marketing and product development agreement that was originally established in 1997, granted Teva an option on one additional bioequivalent product under development by Biovail, and transferred in their entirety Biovail's product development files and related intellectual property for two extended release generic products, which Teva will now continue to develop and ultimately manufacture on its own. In consideration for these agreements, Teva has agreed to make up-front and milestone based payments and has also agreed to an increase in the gross margin percentage shared with Biovail under the exclusive marketing agreement for the balance of its extended term. Teva and Biovail affiliates have also entered into a long-term API supply agreement under which Biovail will increase its purchases for raw material from Teva's API division. These transactions confer financial benefits to both parties. Additional details were not disclosed.