GlaxoSmithKline to divest US rights for Wellbutrin XL to Biovail

GlaxoSmithKline is to sell its commercial rights to Wellbutrin XL in the US to Biovail International Laboratories, for US$510m (£340m).

Generic competition to Wellbutrin XL began at the end of 2006 for the 300mg tablet and during the second quarter of 2008 for the 150mg tablet. US sales of Wellbutrin XL in the first quarter of 2009 were £45m.

Wellbutrin XL (bupropion hydrochloride extended-release tablets) is indicated for the treatment of major depressive disorder and seasonal affective disorder. It was developed by Biovail and has been distributed by GSK in the US since September 2003.

"We are actively reshaping our US business and managing the transition occurring in our product portfolio," said Deirdre Connelly, GSK's president of North American Pharmaceuticals. "This transaction is one of a series of actions we are taking to maximise the value of our current assets and to enable us to resource and invest in new products and upcoming launches."

Under the terms of the agreement, GSK will transfer the US NDA and licence the Wellbutrin XL trademark to Biovail for use in the US. GSK will retain rights to Wellbutrin XL (excluding Canada) for countries outside the US. Sales of Wellbutrin XL outside the US were £7m in the first quarter of 2009.

GSK expects to record a pre-tax gain of approximately £340m as a result of this sale.