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AstraZeneca completes sale of rights to Pfizer

Staff Writer |
AstraZeneca has completed the agreement with Pfizer for the sale of the commercialisation and development rights to its late-stage small molecule antibiotics business.

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It is comprising the approved antibiotics Merrem, Zinforo and Zavicefta, and ATM-AVI and CXL, which are in clinical development.

AstraZeneca has received a payment of $550 million for the commercialisation and development rights to the late-stage antibiotics business in all markets where AstraZeneca holds the rights.

In addition, Pfizer will pay a further $175m in January 2019, up to $250m in commercial, manufacturing and regulatory milestones, up to $600m in sales-related payments as well as recurring, double-digit royalties on future sales of Zavicefta and ATM-AVI in certain markets.

"As AstraZeneca will not maintain a significant future interest in the late-stage small molecule antibiotics business, all payments will be reported as other operating income in the company's financial statements," its board said.

"The $550m upfront and $175m unconditional payment will both be booked in the fourth quarter of 2016, net of a product intangible."

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