Novartis Gains Development, Marketing Rights for New Ritalin Formulation

Celgene Corp. (Warren, NJ) has granted Novartis Pharma AG (Basel, Switzerland) an exclusive worldwide license (excluding Canada) for the development and marketing of d-methylphenidate, Celgene's chirally pure version of Ritalin, used to control the symptoms of Attention Deficit Disorder/Attention Deficit Hyperactivity Disorder (ADD/ADHD). Celgene also grants rights to all its related intellectual properties and patents, including new formulations of the currently marketed Ritalin.

Under terms of the agreement, Celgene will receive upfront fees and milestone payments and royalties on all formulations of the Ritalin family of drugs. In return, Novartis gets the intellectual property rights relating to a long-acting formulation of the current Ritalin, which is already under development at Novartis.

Novartis will fund all remaining development and all marketing expenses required for the regulatory approval process and commercialization. A joint development committee will oversee the marketing trials, which are designed to amplify the safety and efficacy profile of the new drug.

Celgene retains the marketing rights to the new form and formulations of Ritalin for use in the oncology market. Celgene's previous agreement with Biovail Corp. for the exclusive marketing rights to the d-methylphenidate products in Canada will not be affected by the Novartis deal.

Celgene Corp. is an independent biopharmaceutical company engaged in the discovery, development, and commercialization of small molecule drugs for cancer and immunological diseases.

For more information: Robert J. Hugin, Senior VP and CFO, Celgene Corp., 7 Powder Horn Dr., Warren, NJ 07059, Tel: 732-271-4102.

Edited by Jim Pomager