30th Oct 2020 08:59
(Alliance News) - AstraZeneca PLC on Friday announced an agreement to sell its commercial rights to prescription medicines Atacand and Atacand Plus in 70 countries to German pharmaceutical firm Cheplapharm Arzneimittel GmbH for USD400 million.
Atacand is a prescription medicine approved for the treatment of heart failure and hypertension, while Atacand Plus has been approved for just hypertension.
AstraZeneca will continue to manufacture and supply both medicines and also commercialise the medicine during a three-year transition period.
Cheplapharm will pay AstraZeneca USD250 million on the deal's completion, and the remainder in the first half of 2021. Astra said it will recognise the consideration in its accounts for the fourth quarter of 2020 under 'other operating income', but said the sale doesn't affect its annual financial guidance.
"This agreement forms part of our strategy to carefully manage the mature medicines, enabling reinvestment in our main therapy areas to bring innovative new medicines to patients. Cheplapharm previously acquired the rights to Atacand in Europe and will now ensure continued patient access to this important established medicine in additional countries across the globe," said Ruud Dobber, executive vice president of BioPharmaceuticals at Astra.
Also on Friday, Swiss chemicals company Lonza Group AG said it has inked a deal with the FTSE 100 pharmaceutical firm, to manufacture AZD7442, a combination of two long-acting antibodies for the potential prevention and treatment of Covid-19.
The vaccine candidate being developed jointly by Astra and Oxford University is currently in phase one clinical studies, and is expected to advance the combination into phase three in the coming weeks.
Lonza will start manufacturing the drug substance for the vaccine at its facilities in Portsmouth, New Hampshire in the first half of 2021.
"Given the threats posed from the ongoing Covid-19 pandemic, advancing options for prevention and treatment are of crucial importance. Our team is extremely motivated to welcome AstraZeneca as one of the first projects in our new mid-scale facility in Portsmouth. The new facility will provide AstraZeneca with the flexibility and the speed needed to manufacture AZD7442 on accelerated timelines," said Lonza Chief Commercial Officer Jean-Christophe Hyvert.
Shares in AstraZeneca were down 0.4% at 7,848.00 pence on Friday in London, while Lonza's shares were marginally higher at CHF553.40 in Zurich.
By Dayo Laniyan; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Astrazeneca