Novartis Transfers Betaseron Manufacturing To Bayer

The $200 deal will allow Bayer to take over manufacturing of the MS drug Betaseron from Novartis at the company's Emeryville, Calif. location.

Bayer Schering Pharma AG will take over production of the multiple sclerosis drug Betaseron, at Novartis’ Emeryville, Calif. Location.

Under the terms of the agreement, Novartis will transfer manufacturing responsibility for the drug to Bayer Schering Pharma, which will purchase the related equipment and lease several buildings at the Emeryville location for a one-time cash payment of approximately $110 million.

Bayer Schering Pharma will continue to pay Novartis royalties on worldwide net sales of Betaseron until October 2008 when the original regulatory filing, development and supply agreement expires.

Betaseron is marketed by Bayer Schering Pharma AG, which Bayer AG acquired in 2006.

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