AstraZeneca is selling U.S. and Canadian rights to the cancer drug to TerSera while sharing in sales revenue.
The company entered into an agreement with TerSera Therapeutics LLC (TerSera) for the commercial rights to Zoladex in the US and Canada. Zoladex is an injectable drug used to treat prostate cancer, breast cancer, and some benign gynecological disorders. It was first approved in the US and Canada in 1989.
TerSera, based in Cedar Rapids, Iowa, will pay AZ $250 million upon completion. AstraZeneca will also receive sales-related income through milestones totaling up to $70 million, as well as recurring quarterly sales-based payments at the mid-teen percentage of sales, a release stated.
AstraZeneca will also manufacture and supply Zoladex to TerSera, providing a further source of ongoing income from Zoladex in the US and Canada.
Mark Mallon, Executive Vice President, Global Product & Portfolio Strategy at AZ said: “This agreement allows us to retain a significant share of the value of Zoladex in the US and Canada while concentrating our resources on our innovative new oncology medicines. It also ensures patients have continued access to Zoladex, with TerSera’s dedicated focus helping to expand the potential of this important medicine.”
Ed Fiorentino, CEO of TerSera Therapeutics, said: “We are very pleased to be partnering with AstraZeneca, and investing in the future growth of Zoladex, which continues to be a mainstay of treatment for its indicated uses.”
In 2016, sales for Zoladex were $69 million in the US and Canada and $816 million globally. AZ will continue to own Zoladex in all markets outside the US and Canada. The transaction is expected to complete in the first quarter of 2017, subject to customary closing conditions.
The agreement does not include the transfer of any AstraZeneca employees or facilities and does not impact AstraZeneca’s financial guidance for 2017.
AstraZeneca employs 1,500 in Delaware, a state where it has administrative and distribution operations.
