Covance and Sanofi-Aventis Sign Definitive Agreements for 10-Year Strategic R&D Alliance
Sanofi-Aventis Names Covance its R&D Partner as part of US$2.2 Billion Agreement -
Covance Inc. announced the signing of definitive agreements with sanofi-aventis for Covance to become sanofi-aventis' R&D partner. Over the next ten years, Covance expects to provide drug development services to sanofi-aventis, with estimated payments ranging from approximatelyUS$1.2 billion to US$2.2 billion. Sanofi-aventis will sell their Porcheville, France and Alnwick, United Kingdom sites and facilities to Covance for approximately US$25 millionand Covance will maintain employment on these sites for at least the next five years. The transaction is expected to be completed before the end of the year.
Under the agreements, sanofi-aventis will utilize Covance's global R&D portfolio of discovery support, toxicology, chemistry, clinical Phase I - IV, central laboratory, and market access services with annual commitments for these services increasing over the next decade. These agreements include a 10-year sole-source relationship for central laboratory services. Covance will acquire CMC (Chemistry, Manufacturing and Controls) services with the addition of the Porcheville and Alnwick sites, including preformulation, drug formulation, preclinical and early-stage clinical API (Active Pharmaceutical Ingredient) manufacturing, and radiolabeled chemistry.
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