AstraZeneca plc (LSE:AZN), a global, science-led biopharmaceutical company, announced on Tuesday that it has entered into an agreement with Covis Pharma B.V (Covis Pharma), a speciality pharmaceutical company, to sell its rights to the medicines Alvesco (ciclesonide), used for the treatment of persistent asthma, and Omnaris and Zetonna (ciclesonide), used for the treatment of nasal symptoms associated with rhinitis.
These rights cover markets outside the US and the US royalties for the medicines. Covis Pharma currently commercialises Alvesco, Omnaris and Zetonna in the US and will now become the owner of the medicines upon closing of the deal.
This transaction does not include the transfer of any AstraZeneca employees or facilities.
According to the company, one of its strategic objectives is to divest parts of its portfolio, allowing it to allocate resources to develop innovative new medicines to address unmet patient needs.
Covis Pharma will pay AstraZeneca USD350m upon closing, in addition to conditional sales-related payments of up to USD21m over four years from 2019.
This agreement is subject to customary closing conditions and is expected to be completed by the end of 2018. As AstraZeneca will not maintain a significant ongoing interest in the medicines following completion, the payments will be recognised as 'Other Operating Income' in the company's financial statements.
The combined 2017 product sales of Alvesco, Omnaris and Zetonna, recorded by AstraZeneca, were USD106m. This agreement does not affect financial guidance for 2018, the company clarified.
AstraZeneca is focused on the discovery, development and commercialisation of prescription medicines, primarily for the treatment of diseases in the three therapy areas of Oncology, Cardiovascular, Renal & Metabolism and Respiratory.
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