AstraZeneca buys the rights to an asthma treatment in a £138m deal set to boost its cache of new medicines

By Daily Mail Reporter

Updated: 17:38 EDT, 12 June 2014

Drugs giant AstraZeneca has taken another step to boost its flagging pipeline of new medicines by buying the rights to an asthma treatment in a £138million deal.

Britain’s second-biggest pharmaceutical company has recently seen off a £64billion takeover approach from US rival Pfizer, basing its defence on the claim that Astra will create more shareholder value as an independent business.

Astra will pay Synairgen £4.3million upfront for the drug, codenamed SNG001, plus up to another £133million if it hits a series of development, regulatory and commercial milestones.

Rejection: Britain's second-biggest pharmaceutical company has only recently seen off a £64billion takeover approach from US rival Pfizer

Astra shares rose 22.5p to 4422.5p and Synairgen gained 18p to 71p.

The deal gives Astra access to an experimental treatment for viral infections in severe asthmatics.

The company is in a race against time with the so-called ‘patent cliff’ where best-selling medicines lose their protection from cheaper copies.

Under chief executive Pascal Soriot, Astra has looked to bolt-on acquisitions and research deals with smaller biotechnology firms instead of pursuing the mega-mergers that were until recently typical in the pharmaceutical sector.

Under UK takeover rules, Astra can approach Pfizer in late August to discuss a sweetened  bid. Pfizer can make renewed overtures in November, whether invited back or not.