Daiichi Sankyo pulls out of Charleston Labs deal; reports on mirogabalin

Japanese drug major Daiichi Sankyo (TYO 4568), and its US subsidiary, has elected to terminate its 2014 development and commercialization agreement with Charleston Laboratories, forgoing further involvement with the development and commercialization of Charleston Laboratories' hydrocodone products, including CL-108 (hydrocodone, acetaminophen, promethazine) and will be returning all of its rights to those products to Charleston Laboratories.

"During a recent portfolio and US market review, Daiichi Sankyo made the strategic decision to refocus our commercial efforts on our current product line in the US pain franchise as well as other molecules in our pipeline," stated Ken Keller, president, administrative and commercial, Daiichi Sankyo Inc.

Daiichi Sankyo will take an impaired loss of approximately 27.8 billion yen (~$250 million) in the second-quarter consolidated financial result for FY2017 (IFRS) reflecting payments made to Charleston Laboratories under the terms of the agreement. An updated consolidated forecast for FY2017 including this impairment loss will be reported in the second-quarter earnings call disclosure.