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Sciele Pharma Signs Exclusive Zovirax® Promotional Agreement with Biovail
Sciele Pharma, Inc., a specialty pharmaceutical company, today announced that it has entered into a promotional agreement, which has an initial term of five years, with an affiliate of Biovail Corporation to provide promotional support for Zovirax® in the United States.
Zovirax® is a topical form of the drug acyclovir, which is used in the treatment of Type I (cold sores) and Type II (genital) herpes simplex viruses.
Under the terms of the agreement, Sciele Pharma will receive ongoing promotional fees and will be entitled to additional incentive fees after certain dollar baseline targets are met. The Company expects the agreement to be immediately accretive and is increasing its revenue guidance for full-year 2007 to $335 million to $350 million, a $10 to $15 million increase from its previously announced guidance. The Company also is increasing its full-year 2007 earnings per share guidance to $1.53 to $1.62 per share, an increase of $0.08 to $0.12, from its previously announced guidance.
Patrick Fourteau, President and Chief Executive Officer of Sciele Pharma, stated, “We are pleased to begin our partnership with Biovail. This collaboration is further evidence of the successful execution of our business platform and the capabilities demonstrated by our sales force. This transaction provides us with the opportunity to leverage our sales force and expand our presence in the Women’s Health area in advance of the introduction of the new Optinate formulation in the first half of 2007.”
UBS Securities LLC acted as advisor to Sciele Pharma on this transaction.