Watson Pharmaceuticals Inc, a leading specialty pharmaceutical company, announced that, under a supply agreement with GlaxoSmithKline (GSK), Watson has initiated shipments of bupropion hydrochloride sustained-release tablets, in the 150mg strength.

The product is the generic version of GlaxoSmithKline's Zyban, which is indicated for smoking cessation. For the 12-months ending March 2004, Zyban 150mg had sales of approximately $60 million, according to IMS Health data.

Under a previously announced settlement with GSK, Watson received rights in the United States market to distribute 100mg and 150mg bupropion hydrochloride sustained-release tablets, manufactured by a GSK subsidiary, on a per strength basis, once a third party launches a fully substitutable generic equivalent of the relevant strength of these products in the US market.

Watson launched generic versions of Wellbutrin SR in the 100mg strength in January 2004 and the 150mg strength in March 2004. GSK will receive a share of the profits from Watson's sales of generic bupropion hydrochloride sustained-release tablets in the US market. Terms of the agreement were not disclosed.