DRUGS manufacturer Glaxo SmithKline is giving up some of the rights to an anti-impotence drug in a £145.2m deal.

The group has transferred some rights to promote Levitra - a rival to Pfizer's high profile Viagra - to German drugs manufacturer Bayer.

Glaxo, which employs more than 1,000 people in Barnard Castle, County Durham, said the growth in sales of Levitra had not kept pace with its other successful treatments for asthma and diabetes.

David Stout, president of Glaxo's pharmaceutical operations, said: "This agreement represents an opportunity for Glaxo and Bayer to realise the maximum potential value from Levitra. Both companies remain firmly committed to its commercial success. The relationship between Glaxo and Bayer remains strong."

The move will see Glaxo's share of spending on the research and development of Levitra reduced by up to £10.5m.