CRO Covance, based in Princeton, N.J., today announced the signing of definitive agreements with Sanofi-aventis for a research and development partnership worth up to $2.2 billion.

Over the next 10 years, Covance said it expects to provide drug development services to Sanofi-aventis, with estimated payments ranging from approximately $1.2 billion to $2.2 billion.  Sanofi-aventis also will sell its Porcheville, France and Alnwick, United Kingdom sites and facilities to Covance for approximately $25 million, and Covance will maintain employment on these sites for at least the next five years. The transaction is expected to be completed before the end of the year.

“A key strategy for Sanofi-aventis is to transform its R&D model and discover new medicines through the use of novel technologies and innovative partnerships,” said Marc Cluzel, M.D., PhD, executive vice president, R&D, at Sanofi-aventis. “This alliance with Covance will help us preserve hundreds of valuable jobs in Porcheville and Alnwick, while driving our R&D efficiency for the benefit of the patients.”

“We look forward to welcoming the world-class scientific talent in Porcheville and Alnwick to Covance, as well as adding state-of-the-art assets and new services to our portfolio,” said Joe Herring, Covance chairman and CEO. “Today’s announcement represents another win-win solution to the R&D productivity challenges facing the pharmaceutical industry and provides Covance with a unique source of growth.”

The deal calls for Sanofi-aventis to utilize Covance’s global R&D portfolio of discovery support, toxicology, chemistry, clinical phase I–IV, central laboratory and market access services with annual commitments for these services increasing over the next decade. The agreements include a 10-year sole-source relationship for central laboratory services. Covance will acquire CMC (Chemistry, Manufacturing and Controls) services with the addition of the Porcheville and Alnwick sites, including preformulation, drug formulation, preclinical and early-stage clinical API (Active Pharmaceutical Ingredient) manufacturing, and radiolabeled chemistry.