Pharmaceutical group Elan has formed an alliance with American Home Products Corporation (AHP) to develop and commercialise therapeutics for the treatment of sleep disorders, which could generate more than $300 million (€334 million) in global sales, the firm said yesterday.

Under the deal, AHP will contribute the US marketing rights to Sonata, the number three non-barbiturate sedative by market share in the US, effectively transferring the rights of the product to Elan.

Elan will contribute its proprietary drug delivery technologies to develop new formulations of Sonata. Elan will also be responsible for the marketing, sales and distribution of Sonata in the US.