AstraZeneca Plc (LSE:AZN) (NYSE:AZN), a global, science-led biopharmaceutical company, announced on Monday the entering into an agreement with Luye Pharma Group Ltd (Luye Pharma) for the sale and licence of the rights to Seroquel and Seroquel XR in the UK, China and other international markets, including Brazil, Australia, Saudi Arabia, Mexico, South Korea, Thailand, Argentina, Malaysia and South Africa.

Reportedly, this transaction is a part of AstraZeneca's strategy to focus on its three main therapy areas of Oncology, Cardiovascular, Renal & Metabolism and Respiratory.

Seroquel, used primarily to treat schizophrenia and bipolar disease, has lost its compound patent protection globally, while the Seroquel XR formulation patents have now also expired in the vast majority of markets. AstraZeneca had partnered the rights to Seroquel and Seroquel XR in Japan and Venezuela under prior agreements.

According to the company, this agreement with Luye Pharma is in line with its strategy to focus on three main therapy areas while maximising the value from its legacy medicines like Seroquel. The agreement with Luye Pharma will also ensure continued widespread patient access to important established medicines.

Luye Pharma will pay USD538m in consideration including USD260m immediately following closure of the transaction. In addition, a milestone is payable on the successful transition of certain activities to Luye.

AstraZeneca will continue to manufacture and supply Seroquel and Seroquel XR to Luye Pharma during a transition period. The upfront and future payments will be reported by the company as 'Other Operating Income' in its financial statements.

In FY 2017, Seroquel generated annual sales of USD85m in the markets covered by this agreement, while Seroquel XR generated USD63m. The agreement does not change its financial guidance for FY 2018, the company clarified.

This transaction is expected to close by the end of Q2 2018, subject to customary closing conditions and regulatory clearances.

Luye Pharma focuses on developing, producing, marketing and selling pharmaceutical products in the therapeutic areas of oncology, cardiovascular, metabolism and the central nervous system, covering the main global pharmaceutical markets, including China, the US. Europe and Japan.

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.