May 6, 2009 (FinancialWire) — Drugmaker GlaxoSmithKline plc (NYSE: GSK) said it has entered into an agreement to divest full commercial rights to anti-depression drug Wellbutrin XL in the United States to Biovail Corp.’s (NYSE: BVF) (TSX: BVF) Biovail International Laboratories SRL subsidiary for $510 million.

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. U.S. sales of Wellbutrin XL in the first quarter of 2009 were euro 45 million, down 70%, according to GlaxoSmithKline.

Under the terms of the agreement, GSK will transfer the U.S. NDA and license the Wellbutrin XL trademark to Biovail for use in the U.S. GSK will retain existing rights to Wellbutrin XL, excluding Canada, for countries outside the U.S. Sales of Wellbutrin XL outside the U.S. were euro seven million in the first quarter of 2009.

GlaxoSmithKline said it expects to record a pre-tax gain of around euro 340 million in “other operating income” as a result of this divestment. The company now expects the combined total of other operating income and profit on disposal of interests in associates to be around euro 700 million in 2009.

The agreement is subject to antitrust regulatory clearance in the United States.

Wellbutrin XL is prescribed for the treatment of major depressive disorder and seasonal affective disorder. It was developed by Biovail and has been distributed by GSK in the United States since September 2003.

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