The addendum marks the second extension of the agreement signed in 2002, and gives China Medical System Holdings (CMS) the exclusive right to sell Deanxit in China from 2009 to the end of 2013. The current addendum signed with Lundbeck will expire at the end of 2008.
In order for CMS to continue its exclusive agreement with Lundbeck for the marketing of Deanxit in China, CMS is required to purchase certain minimum quantities of Deanxit from Lundbeck in each year over the next five years. Under the new addendum, the purchase price of Deanxit will also be fixed in Renminbi, thereby minimizing any exchange rate risks for CMS.
Lam Kong, CEO of CMS, said: “The combination of the expertise and infrastructure of CMS in China with the Lundbeck antidepressant brands has contributed to the success of Deanxit in China. We are confident that we will continue to surpass the minimum purchase targets.”