Santarus, Inc, a specialty pharmaceutical company, said it has provided notice to Otsuka America Pharmaceutical, Inc. of its intent to terminate their co-promotion agreement effective August 13, 2008, or earlier as the parties may mutually agree. Under the co-promotion agreement, Otsuka America has provided promotional support in the US related to Santarus' Zegerid (omeprazole/sodium bicarbonate) capsules and powder for oral suspension products. Santarus would continue to promote its Zegerid prescription products in the US with its field sales organization and inVentiv contract field sales representatives.

"We remain committed to growing Zegerid prescription product sales. We believe that actions recently taken by other companies to reduce sales force promotion on their branded proton pump inhibitor (PPI) prescription products has created an opportunity for us to reduce our cost structure, while maintaining our share of voice with our targeted physicians," said Gerald T. Proehl, president and chief executive officer, Santarus. "We sincerely appreciate the collaborative efforts of Otsuka America in working together with our commercial team to launch and promote our Zegerid products."

Santarus and Otsuka America entered into the agreement in October 2004 to co-promote Zegerid products in the US through December 31, 2009, unless terminated earlier under amended terms agreed to in January 2006. Following the effective date of termination of the co-promotion agreement there will be no continuing financial commitments for either company, or Santarus will no longer be obligated to pay a high single-digit royalty on Zegerid net sales to Otsuka America. In addition, Santarus anticipates that it will accelerate the timeframe over which it amortizes the remaining balance of the $15 million up-front payment previously received from Otsuka America in October 2004. The remaining deferred revenue balance related to the up-front payment was approximately $5 million as of March 31, 2008.