XXXXX
INDICATES MATERIAL THAT WAS OMITTED AND FOR WHICH CONFIDENTIAL
TREATMENT WAS GRANTED. ALL SUCH OMITTED MATERIAL WAS FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.
COPROMOTION AGREEMENT
By and between
WYETH
acting through its
WYETH PHARMACEUTICALS DIVISION
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1.
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DEFINITIONS
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1
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2.
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APPOINTMENT AND
OBLIGATIONS
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11
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2.1.
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Appointment
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11
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2.2.
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Adjustment to
Initiation Date
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11
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2.3.
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Wyeth’s
Option to Designate Substitute Products
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11
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2.4.
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Permitted
Subcontractors
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13
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2.5.
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Undertaking not
to Compete
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13
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2.6.
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Obligations of
Impax
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13
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2.7.
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Obligations of
Wyeth
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22
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2.8.
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Coordination
Meetings
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24
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2.9.
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Ownership of
Product
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25
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2.10.
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No
Distribution
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27
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3.
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PAYMENTS
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27
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3.1.
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Detail
Fee
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27
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3.2.
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Adjustments to
Detail Price
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27
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3.3.
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No Payment for
Extra Details
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28
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3.4.
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Incentive
Fee
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28
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3.5.
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Taxes and
Withholding
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28
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3.6.
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Currency
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28
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4.
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RECORD KEEPING;
REPORTING AND AUDITS
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28
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4.1.
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Impax Records
and Audits
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28
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4.2.
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Impax
Reports
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29
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4.3.
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Market
Research
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30
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4.4.
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Wyeth Records
and Audits
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30
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5.
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RELATIONSHIP
AND PUBLICITY
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31
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5.1.
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Relationship of
Parties
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31
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5.2.
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Public
Announcements
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31
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6.
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REGULATORY
COMPLIANCE
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31
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6.1.
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Marketing
Authorization
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31
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6.2.
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Recalls
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31
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6.3.
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Returns
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31
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6.4.
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Adverse Drug
Experiences
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31
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6.5.
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Product
Complaints
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33
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6.6.
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Product
Inquiries
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34
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6.7.
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Communications
with FDA
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35
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6.8.
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Additional
Responsibilities of the Parties
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35
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7.
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REPRESENTATIONS, WARRANTIES AND
COVENANTS
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35
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7.1.
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Mutual
Representations and Warranties
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35
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7.2.
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Impax
Representations and Warranties
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36
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7.3.
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Wyeth
Representations and Warranties
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36
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7.4.
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Wyeth
Covenants
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37
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7.5.
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Other
Opportunities
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37
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8.
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INDEMNIFICATION
AND INSURANCE
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37
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8.1.
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Indemnification
by Impax
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37
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8.2.
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Indemnification
by Wyeth
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38
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8.3.
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Defense of
Actions; Settlements
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38
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8.4.
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Limitation of
Liability
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38
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8.5.
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Insurance
Requirements
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39
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9.
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TERM AND
TERMINATION
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39
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9.1.
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Term
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39
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9.2.
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Termination for
Cause
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39
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9.3.
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Termination by
Wyeth
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39
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9.4.
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Termination
without Cause by Impax
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39
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9.5.
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Effect of
Termination
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39
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9.6.
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Survival of
Certain Provisions
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40
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10.
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SAMPLES
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40
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10.1.
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Provision of
Samples
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40
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10.2.
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Shipping and
Distribution of Samples
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40
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10.3.
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Compliance with
PDMA
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41
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10.4.
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Sample Carry
Program
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42
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10.5.
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Sampling
Activity System Audit
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44
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10.6.
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Investigation,
Corrective & Preventative Actions
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44
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10.7.
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Monitoring
& Auditing Programs
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44
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10.8.
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Responsibility
for Compliance
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45
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10.9.
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In-Transit
Losses
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45
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10.10.
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Improper
Handling
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45
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10.11.
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Indemnity for
Failure to Comply
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45
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10.12.
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Additional
Requirements
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45
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11.
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CONFIDENTIALITY
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46
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11.1.
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Nondisclosure
and Nonuse Obligations
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46
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11.2.
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Permitted
Disclosures
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46
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11.3.
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Return of
Confidential Information
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47
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11.4.
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Disclosure of
Agreement
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47
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11.5.
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Equitable
Relief
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47
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12.
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MISCELLANEOUS
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48
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12.1.
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Force
Majeure
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48
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12.2.
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Severability
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48
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12.3.
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Assignability
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48
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ii
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12.4.
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Notices
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49
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12.5.
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Governing Law;
Jurisdiction
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49
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12.6.
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Dispute
Resolution
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49
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12.7.
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No
Waiver
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49
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12.8.
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Headings;
Defined Terms
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50
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12.9.
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Counterparts
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50
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12.10.
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Entire
Agreement; Amendments
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50
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12.11.
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Further
Actions
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50
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iii
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-
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Sample Receipt
Forms
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-
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Wyeth Sales
Training Program for the Initial Product Exhibit A to
Schedule 1.94
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-
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Sample
Calculation of Incentive Fee
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-
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Initial Product
Patents
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-
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Wyeth
Form 1747(b)
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-
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Wyeth
Form 8202
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iv
This Copromotion
Agreement (the “Agreement”) is made and entered into as
of July 16, 2008 (the “Effective Date”), by and
between Wyeth, acting through its Wyeth Pharmaceuticals Division,
having a place of business at 500 Arcola Road, Collegeville,
Pennsylvania 19426 (“Wyeth”) and Impax Laboratories,
Inc., having a place of business at 30831 Huntwood Avenue, Hayward,
California 94544 (“Impax”). Wyeth and Impax may each be
referred to herein individually as a “Party” and
collectively as the “Parties.”
WHEREAS, Wyeth
owns and/or controls marketing and proprietary rights to the
Product (as defined below); and
WHEREAS, Impax has
a sales and marketing organization that promotes certain
pharmaceutical products to physicians and other health care
professionals;
WHEREAS, the
Parties desire that Impax participate in detailing the Product to
Neurologists (as defined below) in the United States;
WHEREAS, the
Parties have agreed to amicably settle patent litigation currently
ongoing between them, and on June 9, 2008, Wyeth and Impax
entered into a Settlement and Release Agreement (the
“Settlement Agreement”) in connection therewith;
and
WHEREAS, the
Settlement Agreement requires the Parties, upon the Settlement Date
(as such term is defined in the Settlement Agreement), to enter
into this Agreement and a License Agreement (the “License
Agreement”) for the grant by Wyeth to Impax of a
non-exclusive license under the Licensed Patents (as such term is
defined in the License Agreement) under which Impax would be
permitted to make, have made, use, sell, offer for sale, import,
market, promote and/or distribute the 37.5 mg, 75 mg and 150 mg
dosage strength extended release venlafaxine hydrochloride capsules
that are the subject of ANDA 78-057 filed by Impax on or about
December 15, 2005 with the FDA for the treatment of major
depressive disorder, social anxiety disorder and panic disorder,
subject to the terms and conditions of the License
Agreement.
NOW, THEREFORE, in
consideration of the mutual covenants contained herein and other
good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the Parties hereto agree as
follows:
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1.
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DEFINITIONS.
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The
following capitalized terms shall have the following meanings for
all purposes of this Agreement:
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1.1.
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“Affiliate”
of any Party shall mean
any Person, directly or indirectly controlling, controlled by, or
under common control with such Party. For purposes of this
Section 1.1, “control” shall mean (a) in the
case of corporate entities, direct or indirect ownership of more
than fifty percent (50%) of the stock or shares having the right to
vote for the election of directors and (b) in the case of
non-corporate entities, direct or indirect ownership of at least
fifty percent (50%) of the equity
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interest with
the power to direct the management and policies of such
non-corporate entity, provided, however , for purposes of
this Agreement, the term “Affiliate” shall not include
subsidiaries in which a Party or its Affiliates owns a majority of
the ordinary voting power to elect a majority of the Board of
Directors, but is restricted from electing such majority by
contract or otherwise, until such time as such restrictions are no
longer in effect.
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1.2.
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“Agency”
shall mean any
applicable supra-national, federal, national, regional, state or
local regulatory agencies, departments, bureaus, commissions,
councils or other government entities regulating or otherwise
exercising authority with respect to the Marketing, sale,
distribution or Promotion of the Product.
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1.3.
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“Annual Change in Market
Share” shall mean, with respect to any
Product and any Contract Year, the Market Share for such Product
during such Contract Year less the Market Share for such Product
with respect to the twelve (12) calendar month period
immediately preceding such Contract Year.
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1.4.
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“Annual Change in Target
Neurologist Market Share” shall mean, with respect to any
Product and any Contract Year, the Target Neurologist Market Share
for such Product during such Contract Year less the Target
Neurologist Market Share for such Product with respect to the
twelve (12) calendar month period immediately preceding such
Contract Year.
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1.5.
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“Applicable
Laws” shall mean (a) the American
Medical Association Guidelines on Gifts to Physicians from
Industry, (b) the PhRMA Code on Interactions with Healthcare
Professionals, (c) the FD&C Act and all other federal,
state and local laws, and (d) the rules, regulations, guidance,
guidelines and requirements of all Agencies in effect from time to
time applicable to the manufacture, marketing, advertising,
promotion, distribution and sale of the Product, in each case as
applicable to a Party’s obligations hereunder.
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1.6.
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“Average Number of Tablets Per
Prescription” shall mean, with respect to any
Product and any Contract Year, the average number of retail tablets
per prescription for such Product in the Territory during such
Contract Year, as measured by IMS NPA prescription data and based
on September moving annual total for the previous calendar year and
once established shall remain constant for such Contract
Year.
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1.7.
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“Average Selling Price per
Tablet” shall mean, with respect to any
Product and any Contract Year, the total Net Sales for such Product
during such Contract Year divided by the total number of tablets of
such Product sold in such Net Sales.
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1.8.
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“Breach”
shall have the meaning
set forth in Section 9.2.
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1.9.
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“Breaching
Party” shall have the meaning set forth in
Section 9.2.
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2
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1.10.
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“Business
Day” shall mean any day other than
(a) a day which is a Saturday or a Sunday or (b) a day on
which banks in New York City, New York are authorized or obligated
by law or executive order to not open or remain closed.
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1.11.
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“Calendar
Quarter” shall mean the respective periods of
three (3) consecutive calendar months ending on March 31,
June 30, September 30, or December 31, for so long
as this Agreement is in effect.
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1.12.
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“Claims”
shall have the meaning
set forth in Section 8.1.
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1.13.
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“Commercially Reasonable
Efforts” shall mean commercially reasonable
efforts and resources.
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1.14.
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“Competing
Product” shall mean any product that is
labeled to treat one or more indications, illnesses or conditions
that the then-current Product is also labeled to treat.
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1.15.
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“Confidential
Information” shall mean any proprietary
technical, business and Marketing information of the other Party
(including, without limitation, all sales and Marketing plans)
disclosed by one Party to the other under this Agreement after the
Effective Date, and whether or not such information is identified
as confidential at the time of disclosure. This Agreement
(including the existence and terms and conditions thereof) shall be
considered Confidential Information of each Party.
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1.16.
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“Contract
Year” shall mean any of Contract Year 1,
Contract Year 2 or Contract Year 3.
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1.17.
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“Contract Year
1” shall mean the period beginning on
the Initiation Date and ending on the day prior to the first
anniversary of the Initiation Date.
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1.18.
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“Contract Year
2” shall mean the period beginning on
the first day following Contract Year 1 and ending on the day prior
to the second anniversary of the Initiation Date.
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1.19.
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“Contract Year
3” shall mean the period beginning on
the first day following Contract Year 2 and ending on the day prior
to the third anniversary of the Initiation Date.
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1.20.
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“CPI”
shall mean the Consumer
Price Index for All Urban Consumers (CPI-U): U.S. City Average,
published by the U.S. Department of Labor.
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1.21.
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“Cumulative Detail
Maximum” shall have the meaning set forth m
Section 2.6.12(a).
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1.22.
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“Cumulative
Details” shall mean, with respect to a given
period of time period, the sum of Primary Details and Secondary
Details actually performed during such period.
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3
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1.23.
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“Detail”
shall mean a
face-to-face meeting, in an individual or group practice setting,
between a Neurologist and one or more Impax PSRs during which a
complete Product presentation that is consistent with Wyeth’s
marketing and promotional strategies as communicated to Impax, is
communicated to such Neurologist, and which meeting may also
involve Sampling. When used as a verb, “Detail” shall
mean to engage in a Detail. A complete Product presentation made to
more than one neurologist shall constitute a separate Detail for
each participating Neurologist (e.g., a complete presentation made
to three Neurologists simultaneously shall constitute three
Details.)
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1.24.
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“Detailed
Product” shall mean the Product and all prior
products designated by Wyeth as the Product pursuant to this
Agreement, including, without limitation, the Initial
Product.
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1.25.
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“Disclosing
Party” shall mean the Party who is
disclosing its Confidential Information to the Receiving
Party.
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1.26.
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“Early Initiation
Notice” shall have the meaning set forth in
Section 2.2.
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1.27.
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“Extra
Detail” shall have the meaning set forth in
Section 2.6.12(b).
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1.28.
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“FDA”
shall mean the United
States Food and Drug Administration, or any successor entity
thereto.
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1.29.
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“FD&C
Act” shall mean the United States Federal
Food, Drug, and Cosmetic Act, as amended, and the rules and
regulations promulgated thereunder.
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1.30.
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“Impax Baseline PSR
Cost” shall mean the Impax PSR Cost for
the twelve (12) month period prior to the Initiation
Date.
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1.31.
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“Impax Cost
Adjustment” shall mean, with respect to any
Contract Year, the percentage equal to the lesser of (a) the
Impax Cost Increase for the previous Contract Year or (b) the
percent increase in the CPI during such previous Contract
Year.
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1.32.
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“Impax Cost
Increase” shall mean, with respect to any
Contract Year, the percentage increase (if any) in the Impax PSR
Cost for such Contract Year over the Impax PSR Cost for the prior
Contract Year or, in the case of the Impax Cost Increase for
Contract Year 1, over the Impax PSR Baseline Cost.
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1.33.
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“Impax Director of
Sales” shall mean Impax’s Vice
President of Sales and Marketing, or a position of similar
seniority occupied by a full-time employee of Impax, which position
has primary oversight responsibility for the implementation of
Impax’s obligations under this Agreement, for leading and
supervising the Impax Sales Management Team and, in conjunction
with the Impax Sales Management Team, for leading and supervising
the Impax PSRs.
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4
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1.34.
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“Impax
Personnel” shall mean the Impax PSRs, the Impax
Sales Management Team and any other employee, representative or
agent of Impax or any Permitted Subcontractor that is involved in
performing Impax’s obligations under this
Agreement.
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1.35.
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“Impax PSR”
shall mean a
professional sales representative who is an employee of either
(a) Impax or (b) a Permitted Subcontractor (in accordance
with Section 2.4 below), which professional sales
representative is responsible for Detailing the Product to
Neurologists in accordance with this Agreement.
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1.36.
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“Impax PSR
Cost” shall mean, with respect to any
Contract Year, for the Impax Baseline Cost, with respect to the
twelve (12) month period ending on the Initiation Date,
Impax’s average out of pocket cost per Impax PSR for such
Contract Year, determined (in the case of any Impax PSR who is an
employee of a Permitted Subcontractor) by dividing the amount paid
by Impax to XXXXX or any other Permitted Subcontractor for
providing such Impax PSRs during such Contract Year plus the Impax
Supervisory Costs for such Contract Year by the number of such PSRs
provided during such Contract Year. In the event that, during any
Contract Year, Impax provides Impax PSRs who are employees of Impax
rather than employees of a Permitted Subcontractor, the Parties
shall agree in good faith on a method for including the
compensation expense to Impax of providing such Impax PSRs in
Impax’s out of pocket costs on a basis that allows for a fair
and accurate determination of both Impax PSR Cost and any resulting
Impax Cost Increase.
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1.37.
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“Impax Regional
Manager” shall mean a full time employee of
Impax who is responsible for supervising Impax PSRs in a specified
collection of sales territories.
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1.38.
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“Impax Sales
Force” shall mean the Impax PSRs and the
Impax Sales Management Team.
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1.39.
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“Impax Sales Management
Team” shall mean (a) the Impax
Regional Managers; (b) Impax’s Director of Sales Operations
or equivalent thereof; and (c) the Impax Director of
Sales.
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1.40.
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“Impax Supervisory
Costs” shall mean, with respect to any
Contract Year, that portion of the compensation expense, plus any
reimbursed or directly allocated out-of-pocket expenses, incurred
during such Contract Year by Impax to provide the Impax Sales
Management Team that is allocable to management and supervision of
Impax PSRs in performance of their obligations under this Agreement
(and not to any other responsibilities), determined in accordance
with GAAP on a consistent basis.
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1.41.
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“IMS”
shall mean IMS Health
Incorporated.
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1.42.
|
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“Incentive
Fee” shall have the meaning set forth in
Section 3.4.
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5
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1.43.
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“Incremental Market
Share” shall mean, with respect to any
Product and any Contract Year, the greater of (a) the Annual
Change in Target Neurologist Market Share for such Product for such
Contract Year less the Annual Change in Market Share for such
Product for such Contract Year or (b) zero.
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1.44.
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“Incremental Net
Sales” shall mean, with respect to any
Product and any Contract Year, XXXXX for such Product in the
Territory for such Contract Year XXXXX:
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In
the case of any Product that is Detailed under this Agreement for
only a portion of a Contract Year (a “Partial Contract
Year”), Incremental Net Sales shall be determined by
reference to such Partial Contract Year by determining the
following on the basis of such Partial Contract Year rather than
the full Contract Year: XXXXX .
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1.45.
|
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“Indemnified
Party” shall have the meaning set forth in
Section 8.3.
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1.46.
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“Indemnifying
Party” shall have the meaning set forth in
Section 8.3.
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1.47.
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“Initial
Product” shall mean desvenlafaxine tablets
currently Marketed by Wyeth under the brand name PRISTIQ™ in
the Territory.
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1.48.
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“Initial
Training” shall have the meaning set forth in
Section 2.6.8(a).
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1.49.
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“Initiation
Date” shall mean July 1, 2009, or
such earlier date as may be established pursuant to
Section 2.2.
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1.50.
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“Market”
shall mean, when used as
a verb, to market, sell, distribute, Promote, or advertise a
product.
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1.51.
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“Market
Share” shall mean, with respect to any
Product and any period, the total prescriptions written for the
Product in the Territory during such period as a percentage of the
total prescriptions written for all products in the Product’s
Therapeutic Category in the Territory during such period, each as
measured by monthly Xponent prescription data published by IMS; it
being understood that the Therapeutic Category for the Initial
Product shall be the Antidepressant Category, as defined by
IMS.
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1.52.
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“Minimum Detail
Requirement” shall have the meaning set forth in
Section 2.6.12(a).
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1.53.
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“Monthly Detail
Report” shall mean, collectively, the raw
data, written report and other information that Impax is required
to deliver to Wyeth on a monthly basis pursuant to
Section 4.2.
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6
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1.54.
|
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“Net Sales”
shall mean the aggregate
gross amounts invoiced for the sale of Product by or on behalf of
Wyeth or any of its Affiliates (each a “Selling
Person”) in arm’s length transactions with Third
Parties for use in the Territory, less the following deductions, in
each case to the extent specifically related to Product and taken
by the Selling Person or otherwise paid for, or accrued by, the
Selling Person: (i) cash discounts; (ii) adjustments on
account of price adjustments, or billing adjustments;
(iii) returns of rejected or damaged goods;
(iv) chargebacks; (v) the cost of duties, insurance,
freight handling or other transportation costs to the extent
included in any invoiced amount used to determine gross sales; and
(vi) rebates, promotional allowances, and similar payments to
all direct customers, including wholesalers and other distributors,
buying groups, health care insurance carriers, pharmacy benefit
management companies, health maintenance organizations, Medicaid or
Medicare or similar type programs. Net Sales shall be determined
using the accrual method of accounting determined in a manner
consistent with Wyeth’s practice for its other pharmaceutical
products. Sales of Product by and between Wyeth and its Affiliates
are not sales to Third Parties and shall be excluded from Net Sales
calculations for all purposes, it being understood that the sale of
Product by Wyeth or any of its Affiliates to a Third Party shall be
utilized in calculating Net Sales under this Agreement.
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1.55.
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“Neurologist”
shall mean a medical
doctor who is (a) licensed to practice medicine in the
Territory, (b) certified in the practice of neurology by the
American Board of Psychiatry and Neurology and (c) identified
as a neurologist or as practicing any subspecialty of neurology,
other than pediatric neurology or any pediatric subspecialty, based
on the American Medical Association specialty code contained within
the monthly prescriber log delivered by IMS (or such other Third
Party vendor as Wyeth may utilize). “Neurologist” shall
also include any nurse practitioner or physician’s assistant
having prescribing authority and acting under the supervision of a
Neurologist, provided, however, that for the purpose of determining
the number of Details, (i) any nurse practitioner or
physician’s assistant together with his or her supervising
Neurologist shall be treated as a single Neurologist and
(ii) any nurse practitioner or physician’s assistant
shall be treated as being under the supervision of only one
Neurologist.
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1.56.
|
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“New Hire
Training” shall have the meaning set forth in
Section 2.6.8(b).
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1.57.
|
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“Non-Breaching
Party” shall have the meaning set forth in
Section 9.2.
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1.58.
|
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“Non-Target
Neurologist” shall mean a Neurologist practicing
in the Territory who is not a Target Neurologist.
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1.59.
|
|
“Permissible Initiation
Dates” shall mean each of the following:
July 1, 2008, October 1, 2008, January 1, 2009,
April 1, 2009 and July 1, 2009.
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1.60.
|
|
“Permitted
Subcontractor” shall have the meaning set forth in
Section 2.4.
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7
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1.61.
|
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“Person”
shall mean an
individual, a corporation, a partnership, an association, a trust
or other entity or organization, including a government or
political subdivision or an agency or instrumentality
thereof.
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1.62.
|
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“Prescribing
Information” shall mean the prescribing
information published by Wyeth in connection with the Marketing of
the Product.
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1.63.
|
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“Primary
Detail” shall mean a Detail in which Product
information is communicated by an Impax PSR to a Target Neurologist
or a Non-Target Neurologist, in each case subject to the provisions
of Section 2.6.12(b), with the specified content as defined
from time to time by Wyeth within its reasonably exercised
discretion, where (a) such information is the first such
product information communicated by such Impax PSR, (b) the
predominant portion of time and emphasis during such communication
is focused on the Product and (c) such Detail involves the
communication of information with respect to no more than three
(3) products.
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1.64.
|
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“Primary Detail
Price” shall have the meaning set forth in
Section 3.1.
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1.65.
|
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“Product”
shall mean the Initial
Product or such other product as Wyeth may designate from time to
time pursuant to Section 2.3 to have Detailed by Impax for
Wyeth under this Agreement.
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1.66.
|
|
“Product Substitution
Notice” shall have the meaning set forth in
Section 2.3.1.
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1.67.
|
|
“Promotion”
shall mean those
activities, including, without limitation, detailing and
distributing samples of a product, normally undertaken by a
pharmaceutical company’s sales force to implement marketing
plans and strategies aimed at encouraging the appropriate use of a
particular prescription pharmaceutical product. When used as a
verb, “Promote” shall mean to engage in such
activities.
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1.68.
|
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“Quarterly Detail
Minimum” shall mean XXXXX (XXXXX)
Cumulative Details (such amount to be prorated for any partial
period of three consecutive calendar months, including that portion
of such period during which there is a downward adjustment as
provided in this Section 1.68), provided that the
Quarterly Detail Minimum shall be adjusted downward by fifty
percent (50%) during the first three calendar months following the
completion of any Initial Training of the Impax Sales Force with
respect to the Initial Product or a subsequent Product pursuant to
Sections 2.6.8 and/or 2.3.3 and shall be reduced pro rata in
the case of any suspension of Product Sales due to regulatory
action or a product suspension or recall or voluntary withdrawal by
Wyeth based on the percentage which represents the number of
Business Days in the Calendar Quarter during which Detailing of the
Product is suspended or prohibited (other than as a result of any
action or omission by Impax or any Impax PSR) relative to the total
Business Days in such Calendar Quarter.
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1.69.
|
|
“Quarterly
Details” shall mean the number of Cumulative
Details performed by Impax during a given Calendar
Quarter.
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8
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1.70.
|
|
“Quarterly
Meeting” shall mean those meetings between
Impax and Wyeth as described in Section 2.8.
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1.71.
|
|
“Receiving
Party” shall mean the Party who is
receiving Confidential Information from the Disclosing
Party.
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1.72.
|
|
“Refresher
Training” shall have the meaning set forth in
Section 2.7.6(c).
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1.73.
|
|
“Retired
Neurologist” shall mean a Neurologist that is
deceased or is no longer practicing in the Territory.
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1.74.
|
|
“Sales Call
” shall mean an
interaction between an Impax PSR and a Neurologist in which the
Product is the subject of either a Primary Detail or a Secondary
Detail.
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1.75.
|
|
“Sales Call
Plan” shall mean the plan established from
time to time pursuant to Section 2.6.11, which sets forth the
Detailing reach (i.e., number of Neurologists) and frequency (i.e.,
number of Details per Neurologist and the relevant timing of such
Details) objectives for the Impax PSRs.
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1.76.
|
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“Sample”
shall mean a unit of the
Product packaged as a sample, as used by Wyeth, that is not
intended to be sold and is intended to promote the sale of the
Product. When used as a verb, “Sample” shall mean to
provide Samples to Neurologists.
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1.77.
|
|
“Sample
Audit” shall have the meaning set forth in
Section 10.5.
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1.78.
|
|
“Sample Carry
Program” shall have the meaning set forth in
Section 10.4.
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1.79.
|
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“Sample Receipt
Forms” shall mean those multi-part forms,
whether paper or electronic, supplied by Impax or Impax’s
Permitted Subcontractor for the purpose of recording Detail and
Sample activity performed by Impax PSRs during Sales Calls. These
forms shall also be used as Sample receipts on which to obtain a
Neurologist’s signature in acknowledgment of receipt of
Samples. Each Sample Receipt Form shall include, at a minimum, the
information set forth in Schedule 1.79.
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1.80.
|
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“Secondary
Detail” shall mean a Detail in which
information about the Product is communicated by an Impax PSR to a
Target Neurologist or a Non-Target Neurologist, in each case
subject to the provisions of Section 2.6.12(b), with the
specified content as defined from time to time by Wyeth within its
reasonably exercised discretion, where (a) such information is
the second product information communicated by such Impax PSR,
(b) the amount of time and emphasis of such communication is
less than that for the communication of information of the product
that is the subject of the primary Detail during such
communication, but is more than that for the communication of
information with respect to any other product that is promoted
during such Sales Call and (c) such
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9
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Detail involves the communication of
information with respect to no more than three
(3) products.
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1.81.
|
|
“Secondary Detail
Price” shall have the meaning set forth in
Section 3.1.
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1.82.
|
|
“Substitution
Date” shall have the meaning set forth in
Section 2.3.1.
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1.83.
|
|
“Target List”
shall have the meaning
set forth in Section 2.7.3.
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1.84.
|
|
“ Target Neurologist Market Share
” shall mean, with respect to any Product and any
period, the total prescriptions written for the Product by Target
Neurologists in the Territory during such period as a percentage of
the total prescriptions written for all products in the
Product’s Therapeutic Category by Target Neurologists in the
Territory during such period, each as measured by monthly Xponent
prescription data published by IMS; it being understood that the
Therapeutic Category for the Initial Product shall be the
Antidepressant Category, as defined by IMS.
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1.85.
|
|
“Target
Neurologists” shall mean the group of Neurologists
identified by Wyeth on the then-current Target List.
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1.86.
|
|
“Tier 1 Target
Neurologists” shall mean the five hundred
(500) Target Neurologists identified by Wyeth from time to
time as Tier I Target Neurologists.
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1.87.
|
|
“Tier 2 Target
Neurologists” shall mean any Target Neurologist
other than a Tier 1 Target Neurologist.
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1.88.
|
|
“Term”
shall have the meaning
set forth in Section 9.1.
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1.89.
|
|
“Territory”
shall mean the fifty
(50) states of the United States and the District of
Columbia.
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1.90.
|
|
“Therapeutic
Category” shall mean, with respect to any
Product, the therapeutic category or categories for which IMS
reports prescriptions written for such Product and other products
included in the same category or categories.
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1.91.
|
|
“Third Party”
shall mean any Person
other than Wyeth, Impax or any of their respective
Affiliates.
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1.92.
|
|
“Trademark”
shall have the meaning
set forth in Section 2.9.2.
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1.93.
|
|
“Wyeth
Improvements” shall have the meaning set forth in
Section 2.9.6.
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|
1.94.
|
|
“Wyeth Policy on Sales and
Marketing Practices” shall mean Wyeth’s promotion
guidelines for the Product, as the same may be amended from time to
time by Wyeth, in its sole discretion.
|
10
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1.95.
|
|
“Wyeth Sales Training
Program” shall mean the sales training
program described in Schedule 1.95.
|
|
2.
|
|
APPOINTMENT AND
OBLIGATIONS
|
|
|
2.1
|
|
Appointment . Wyeth hereby appoints Impax, on a
non-exclusive basis, and Impax agrees, to Detail the Product in the
Territory to Neurologists, as of the Initiation Date and thereafter
during the Term in accordance with the terms and conditions of this
Agreement. Impax, without charge or expense to Wyeth (other than as
expressly set forth in Article 3 of this Agreement), shall
provide all facilities, personnel (including management and sales
representatives) and other resources as are reasonably necessary to
successfully perform Impax’s obligations under this
Agreement. The Parties specifically agree that, without
Wyeth’s written consent, which Wyeth may withhold in its sole
discretion, Impax shall not intentionally Detail the Product to any
physician other than a Neurologist, sell or distribute the Product,
place journal or other advertisements for the Product, issue press
releases regarding the Product, conduct opinion leader development
activity in connection with the Product, establish or participate
in advisory boards concerning the Product, participate in or
conduct peer selling activity concerning the Product, enter into or
discuss with customers or potential customers (including, without
limitation, managed care organizations) contracts for the sale of
or discounts or rebates on the sale of the Product, conduct other
general marketing activities with respect to the Product, or
initiate, conduct or participate in any studies for the Product
other than Detailing of the Product to the extent expressly
permitted by this Agreement.
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2.2
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Adjustment to Initiation
Date . Impax
shall begin Detailing the Product in accordance with this Agreement
no later than July 1, 2009. In the event that Impax procures
the necessary resources and is prepared to begin Detailing the
Product prior to July 1, 2009, Impax shall promptly notify
Wyeth in writing (such notice referred to herein as the
“Early Initiation Notice”). If Wyeth receives the Early
Initiation Notice at least sixty (60) days prior to
July 1, 2008, then the Initiation Date shall automatically be
adjusted to July 1, 2008. If Wyeth receives the Early
Initiation Notice at any other time prior to July 1, 2009,
then the Initiation Date shall automatically be adjusted to the
first of the Permissible Initiation Dates to occur no less than
ninety (90) days following Wyeth’s receipt of such Early
Initiation Notice, provided that in no event shall the
Initiation Date occur after July 1, 2009. Notwithstanding any
provision of this Section 2.2 to the contrary, in no event
shall Impax permit any member of the Impax Sales Force to begin
Detailing the Product before such individual has successfully
completed all training required pursuant to Section
2.6.8.
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2.3
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Wyeth’s Option to Designate
Substitute Products .
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2.3.1
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General . During the Term, Wyeth may, from
time to time and in its sole discretion, elect to designate an
alternate product as the Product that is to be Detailed by Impax
under this Agreement, provided that (a)
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any such
alternate product must (i) be indicated for the treatment of
one or more neurological conditions or (ii) target one or more
illnesses or conditions commonly treated by Neurologists, and
(b) Wyeth may not designate more than one (1) Product to
be Detailed under this Agreement at any given time during the Term.
In the event Wyeth elects to substitute an alternate product as the
Product pursuant to this Section 2.3.1, Wyeth shall notify
Impax in writing of such substitution (each such notice referred to
herein as a “Product Substitution Notice”) no later
than sixty (60) days prior to the date specified in such
Product Substitution Notice as the date that such alternate product
is to first be Detailed pursuant to this Agreement which date shall
be the later of the date of resolution of any dispute under
Section 2.3.2 and the date of the completion of Initial
Training for the substituted Product (the “Substitution
Date”). For the avoidance of doubt, Wyeth may elect to
substitute an alternate product as the Product under this Agreement
on one or more occasions during the Term, in its sole discretion
provided that, without Impax’s consent, such substitution
shall not occur more than once in any twelve (12) month
period. Notwithstanding the foregoing limitation, in the event that
a Product undergoes a recall or voluntary withdrawal from the
market due to one or more adverse eve
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