ARNHEM, The Netherlands, Jan. 08, 2004 (PRIMEZONE) -- Akzo Nobel's human healthcare business Organon and Sanofi-Synthelabo have announced that they have agreed in principle to revise the terms of their collaboration on antithrombotic Arixtra(r) and certain other oligosaccharides, such as idraparinux (SanOrg 34006). Pursuant to this deal, Organon will transfer to Sanofi- Synthelabo its remaining rights for Arixtra and development obligations for Arixtra and other oligosaccharides in exchange for revenues based on future sales.
Both companies have concluded that a single management structure will strengthen the opportunities for commercial success in the complex U.S. market for Arixtra. As part of the agreement, Organon will receive from Sanofi-Synthelabo revenues based on future sales from jointly-developed antithrombotic products.
Arixtra, the latest generation of antithrombotics, has the highest efficacy and safety profile in the prophylaxis of acute deep vein thrombosis -- which may lead to pulmonary embolism -- in patients undergoing hip fracture surgery, hip replacement surgery and knee replacement surgery. Idraparinux is specifically being developed for various indications such as chronic thrombosis.
Akzo Nobel expects the agreement to contribute to its profit margin over the coming years. The new agreement follows Akzo Nobel's strategic review of its pharmaceutical business last year. "It will enable us to secure profitability while focusing on the growth of therapeutic areas in which Organon has leading positions. This step aligns with our commitment to fix our pharmaceutical business group through a more focused and flexible approach," said Toon Wilderbeek, Member of Akzo Nobel's Board of Management.
"The agreement with Sanofi-Synthelabo simplifies the management of the antithrombotic franchise, whilst creating a return on the effort we have put into Arixtra and other products together with Sanofi-Synthelabo. Our goal is to safeguard margins in the short term and drive growth from our pipeline. This strategic realignment on Arixtra will secure Organon's profitability and maximize R&D cost benefits while lowering our risk profile," explained Wilderbeek. Employee representative bodies were notified of the new agreement, which is also subject to regulatory approvals as appropriate.
Note for the editor
Akzo Nobel, based in the Netherlands, serves customers throughout the world with healthcare products, coatings and chemicals. Consolidated sales for 2002 totaled EUR 14 billion. The Company currently employs approximately 65,200 people in more than 80 countries. Financial results for 2003 will be published on February 3, 2004.
Akzo Nobel's human healthcare unit Organon, headquartered in Roseland, NJ USA, is a renowned pharmaceutical company with a strong commitment to human health care. The company develops and produces innovative prescription medicines for Gynecology, Psychiatry, Cardiovascular diseases, Immunology and Anesthesia. Organon products are sold in over 100 countries, more than half of which have an Organon subsidiary. The company currently employs approximately 12,450 people.
Sanofi-Synthelabo is a major global research-based pharmaceutical group with 32,500 employees in more than 100 countries.
With sales of EUR 8 billion, Sanofi-Synthelabo ranks among the world's top 15 pharmaceutical companies. The company is headquartered in Paris and listed in Paris (Euronext:SAN) and in New York (NYSE:SNY). With an R&D portfolio of 55 compounds in development, Sanofi-Synthelabo is focused on a core group of four therapeutic areas: cardiovascular disease and thrombosis; diseases of the central nervous system; internal medicine; and oncology. Internet: www.akzonobel.com; www.organon.com; www.sanofi-synthelabo.com
Safe Harbor Statement(1)
This press release may contain statements which address such key issues as Akzo Nobel's growth strategy, future financial results, market positions, product development, pharmaceutical products in the pipeline, and product approvals. Such statements should be carefully considered, and it should be understood that many factors could cause forecasted and actual results to differ from these statements. These factors include, but are not limited to, price fluctuations, currency fluctuations, developments in raw material and personnel costs, pensions, physical and environmental risks, legal issues, and legislative, fiscal, and other regulatory measures. Stated competitive positions are based on management estimates supported by information provided by specialized external agencies. For a more complete discussion of the risk factors affecting our business please refer to our Annual Report on Form 20-F filed with the United States Securities and Exchange Commission. A copy of which can be found on the Company's website www.akzonobel.com.
(1)Pursuant to the U.S. Private Securities Litigation Reform Act 1995.
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