Lonza, Inc. has terminated its Sodium Gamma Hydroxybutyrate development and supply agreement with Jazz Pharmaceuticals, Inc. The original agreement dates back to November 6, 1996 and, as amended, will end December 31, 2011.

Under the agreement, Jazz Pharma purchases its worldwide supply of sodium oxybate, the API in Xyrem (sodium oxybate) oral solution, from Lonza. Jazz Pharma may terminate the agreement with 30 days’ notice if Lonza is unable to meet the company’s minimum requirements or timeframes for supply.

Lonza recently announced plans to close its U.S. facility where it manufactures sodium oxybate. The two companies have been working together to ensure a continued supply. Lonza remains contractually obligated to supply the API through December 2011; however, Jazz Pharma has also identified potential new manufacturers to meet its requirements.