AstraZeneca Plc (LSE:AZN), a global, science-led biopharmaceutical company, on Tuesday announced that it has agreed to divest the prescription medicine rights to Nexium (esomeprazole) in Europe, as well as the global rights (excluding the US and Japan) to Vimovo(naproxen/esomeprazole) to Grünenthal, a science-based pharmaceutical company specialised in pain management and related therapies.

Reportedly, these medicines are outside AstraZeneca's three main therapy areas of Oncology, Cardiovascular, Renal & Metabolism and Respiratory.

Also, Nexium has lost compound patent protection in the majority of global markets. Vimovo is patent protected in most European markets until 2025.

Nexium, a proton pump inhibitor developed by AstraZeneca, helps to reduce the amount of acid produced by the stomach in patients with gastrointestinal reflux conditions and ulcers. Vimovo is a modified-release fixed-dose combination tablet of naproxen, a pain -relieving NSAID and esomeprazole, the active ingredient in Nexium, for the treatment of various inflammatory diseases, including osteoarthritis, rheumatoid arthritis and ankylosing spondylitis in patients at risk of developing NSAID (non-steroidal anti -inflammatory drugs) associated gastric ulcers and/or duodenal ulcers.

For Nexium, Grünenthal will make an upfront payment of USD700m upon completion of the deal. AstraZeneca may also receive future milestones and sales-related payments of up to USD90m. For Vimovo, Grünenthal will make an upfront payment of USD115m on completion. AstraZeneca may also receive future milestones and sales-related payments of up to USD17m.

Such upfront and milestone payments will be reported by the company as Other Operating Income in its financial statements. These divestments are expected to be completed in 2018.

In addition, AstraZeneca will continue to commercialise Nexium in all markets outside Europe, where the company retains the rights. On completion of the agreements, AstraZeneca will not retain any ownership rights to Vimovo globally, or to Nexium in Europe. Nexium sales in Europe in H1 2018 were USD121m. Vimovo's global sales, excluding the US and Japan, in H1 2018, were USD37m.

The company added that it will continue to manufacture and supply Nexium under a long-term supply agreement.

According to the company, these divestment agreements allow it to realise value from its successful medicines, while redeploying its resources on developing innovative medicines for patients across its three main therapy areas, which is expected to drive growth.

AstraZeneca focuses 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.