GlaxoSmithKline has entered into an agreement to divest full commercial rights to Wellbutrin XL in the U.S. to Biovail International Laboratories, for $510 million. GSK will retain existing rights to Wellbutrin XL for countries outside the U.S., excluding Canada.

"We are actively reshaping our U.S. business and managing the transition occurring in our product portfolio," said Deirdre Connelly, president North American Pharmaceuticals, GSK. "This transaction is one of a series of actions we are taking to maximize the value of our current assets and to enable us to resource and invest in new products and upcoming launches."

Generic competition for Wellbutrin XL began at the end of 2006 for the 300mg tablet and during 2Q08 for the 150mg tablet. U.S. sales of Wellbutrin XL in 1Q09 were $59.8 million (-70%). Wellbutrin XL is indicated for the treatment of major depressive disorder and seasonal affective disorder. It was developed by Biovail and has been distributed by GSK in the U.S. since September 2003.

As a result of the divestment, GSK expects to record a pre-tax gain of approximately $455 million in 2009. The agreement is subject to Hart-Scott-Rodino regulatory clearance in the U.S.