AstraZeneca adds nearly $0.5bn to books as two deals go through
By Josh White
Date: Monday 03 Jul 2017
(ShareCast News) - AstraZeneca confirmed the completion of two major transactions on Monday, bringing in almost half a billion dollars for the drugmaker in the current financial year.
The FTSE 100 company said it had completed the agreement with Recordati for the commercial rights to Seloken in Europe, with an upfront payment of $290m to be recorded in the second quarter of 2017.
It also said it had completed the agreement with Grunenthal for the global rights to Zomig outside Japan, with an upfront payment of $200m to be recorded in the same quarter.
The deal with Recordati, first announced on 22 May, was for the commercial rights to Seloken/Seloken ZOK (metoprolol tartrate and metoprolol succinate respectively) and associated Logimax fixed-dose combination (metoprolol succinate and felodipine) treatments in Europe.
Metoprolol succinate is a beta-blocker for the control of hypertension, angina and heart failure.
Alongside the upfront payment, AstraZeneca was set to receive sales-related income through tiered royalties, initially at a double-digit percentage of sales.
"This agreement allows us to concentrate our resources on bringing multiple new medicines to patients," AstraZeneca's executive vice president of global product and portfolio Mark Mallon said at the time.
"Recordati's expertise in cardiovascular disease and established European salesforce will help to expand the commercial potential of the Seloken brands, which are mature medicines for the new AstraZeneca."
The Grunenthal deal, announced on 7 June, was for the global rights to Zomig - indicated for the acute treatment of migraines and cluster headaches - outside Japan.
AstraZeneca claimed the treatment was in an area of medicine outside of its focus.
As well as the $200m upfront payment, AstraZeneca was also set to receive up to $102m in future milestone payments.
"Grunenthal is an established partner with expertise in the treatment of pain," Mallon said of that deal.
"It is well placed to ensure patients continue to benefit from Zomig, and to extend the commercial potential of the medicine through its dedicated salesforce."
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