30th Oct 2019 08:16
(Alliance News) - AstraZeneca PLC on Wednesday said it sold the European and Russian commercial rights of two medications to German pharmaceutical firm Cheplapharm Arzneimittel GmbH for up to USD239 million.
Both Seroquel and Seroquel XR, used to treat schizophrenia and bipolar disorder, lost their compound patent protection in the European and Russian markets, Astra said.
A patent protection ensures that only the maker of the drug is able to profit from it.
The consideration comprises of an upfront fee of USD178 million and a future sales-contingent payment of USD61 million.
Astra added: "In 2018, Seroquel generated annual product sales of USD47 million in the markets covered by this agreement, while Seroquel XR generated USD61 million."
The FTSE 100 firm said the transaction, which is due to be completed in the fourth quarter of 2019 following regulatory clearance, will not impact its full-year guidance.
Astra will continue to manufacture the medications during an unspecified transitional period.
Executive Vice President of Biopharmaceuticals Ruud Dobber said: "Seroquel is an important established medicine and this agreement with Cheplapharm will help ensure continued patient access. It forms part of our strategy of reducing the portfolio of mature medicines to enable reinvestment in our main therapy areas."
The company's shares were marginally higher at 7,390.00 pence each in early trading on Wednesday morning in London.
By Eric Cunha; [email protected]
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