AstraZeneca has announced that it will sell the European rights to acid-reflux medicine Nexium to Grunenthal. The sale will be made for an upfront $700 million. Future sales-related payments are said to reach up to $90 million. This is as a result of it not being in the company’s targeted therapy areas.
In addition to the sale, AstraZeneca has said that the German company Grunenthal will purchase the worldwide rights to Vimovo.
The worldwide rights to the pain-relief drug excludes the US and Japan. They will be purchased by Grunenthal for $115 million and additional payments have the potential to reach $17 million.
Executive Vice President of the Global Product and Portfolio Strategy, Mark Mallon, commented:
“The divestment agreements allow us to realise value from our successful medicines while redeploying our resources on developing innovative medicines for patients across our three main therapy areas, which we expect to drive growth for AstraZeneca. Grunenthal is a science-based pharmaceutical company specialised in innovative pain management and related therapies. Its expertise and distribution networks will help expand the commercial potential of both Nexium and Vimovo, helping to reach many patients who could benefit.”
Nexium is a proton pump inhibitor developed by AstraZeneca. But, it has lost patent protection in the majority of global markets. Vimovo, on the other hand, remains protected in the majority of European markets until 2025.
The rights to Nexium were sold to Pfizer in 2012.
Moreover, AstraZeneca has said it will continue to manufacture and supply Nexium. This is set under a long-term supply agreement. Equally, it will continue to commercialise the medicine in all markets outside of Europe.
The biopharmaceutical company is a global, science-led business that focuses on the discovery, development and commercialisation of prescription medicines. This is primarily for the treatment of diseases in three therapy areas; oncology, cardiovascular, renal and metabolism and respiratory.
Earlier this year, the European Commission approved AstraZeneca’s Bydureon BCise devise. Equally, its hairy cell leukaemia treatment was approved by the FDA.
At 10:34 today, shares in AstraZeneca plc (LON:AZN) were trading at +1.06%.
At 06:17 GMT -4 today, shares in Pfizer Inc. (NYSE:PFE) were trading at +1.48%.
