8th May 2018 08:33
LONDON (Alliance News) - FTSE 100-listed pharmaceutical giant AstraZeneca PLC said on Tuesday it has signed an agreement with Luye Pharma Group Ltd for the sale of the rights to Astra's schizophrenia treatment compound Seroquel and Seroquel XR.
The licence covers several international markets including the UK, China, Brazil, Australia, Mexico, Saudi Arabia and South Africa.
Luye Pharma will pay a total of USD538.0 million, with an initial payment of USD260.0 million following the closing of the transaction, which is expected at the end of the second quarter of 2018, subject to financial and regulatory conditions.
AstraZeneca will continue to manufacture and supply Seroquel and Seroquel XR to Luye Pharma within a transition period.
The agreement is in line with AstraZeneca's strategy to focus on its main areas of Oncology, Cardiovascular, Renal & Metabolism and Respiratory, it said, especially following the expiry of both Seroquel products' patent protection in most markets.
"The agreement with Luye Pharma is in line with AstraZeneca's strategy to focus on three main therapy areas while maximising the value from our legacy medicines like Seroquel. The agreement with Luye Pharma will also ensure continued widespread patient access to important established medicines," said Mark Mallon, AstraZeneca's executive vice president for global product & portfolio strategy.
Shares in AstraZeneca were up 0.3% at 5,222.00 pence on Tuesday.
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