Daiichi Sankyo Terminates Agreement with Charleston Laboratories

Daiichi Sankyo has elected to terminate its 2014 development and commercialization agreement with Charleston Laboratories, forgoing further involvement with the development and commercialization of Charleston Laboratories' hydrocodone products, including CL-108 (hydrocodone, acetaminophen, promethazine) and will be returning all of its rights to those products to Charleston Laboratories.

"During a recent portfolio and U.S. market review, Daiichi Sankyo made the strategic decision to refocus our commercial efforts on our current product line in the U.S. pain franchise as well as other molecules in our pipeline," Ken Keller, President, Administrative and Commercial, Daiichi Sankyo said. "We would like to thank Charleston Laboratories for its partnership and commitment to patients suffering with acute pain and opioid-induced nausea and vomiting.  Daiichi Sankyo remains dedicated to bringing innovative medicines to patients and will continue to explore future opportunities that support our corporate strategy to expand our business and achieve long-term growth."

Daiichi Sankyo will take an impaired loss of approximately $250 million in the 2nd quarter consolidated financial result for FY2017 (IFRS) reflecting payments made to Charleston Laboratories under the terms of the agreement. An updated consolidated forecast for FY2017 including this impairment loss will be reported in the 2nd quarter earnings call disclosure.