AstraZeneca entered into an agreement with Aspen Global Incorporated that will sell off the remaining rights to established anesthetic medicines, including Diprivan.
AstraZeneca has been selling off businesses that don’t fit in with its focus on cardiac disease, cancer, diabetes, vaccines and inflammatory conditions such as arthritis.
AstraZeneca entered into an agreement with AGI in June 2016 that gave rights to the medicines in markets outside the US.
Under the terms of the new agreement, AGI will now acquire the remaining rights to the intellectual property and manufacturing know-how related to the anaesthetic medicines for an upfront payment of $555 million.
Also, AGI will pay AstraZeneca up to $211 million in performance-related milestones based on sales and gross margin during the period from 1 September 2017 to 30 November 2019.
AstraZeneca will continue to manufacture and supply the medicines to AGI during a transition period of up to five years.
Mark Mallon, Executive Vice President, Global Product and Portfolio Strategy, AstraZeneca said: “AstraZeneca, AGI and patients have all benefitted from the successful commercial agreement we established last year. As our relationship has evolved, AGI has shown that it is in a strong position to maximise the value and reach of the anaesthetic medicines through its extensive commercial network. Disposing the remaining rights to the medicines allows both companies to benefit from greater efficiencies as AstraZeneca continues to focus our resources on our three main therapy areas.”
Under the new agreement, AGI will no longer pay royalties to AstraZeneca.
The remaining $100 million product sales-related payment from the original agreement will be made to AstraZeneca in 2018, if the terms are met.
The new, additional agreement is expected to close in the fourth quarter of 2017, subject to customary closing conditions and regulatory clearances. It does not impact AstraZeneca’s financial guidance for 2017.
AstraZeneca has about 1,500 employees in Delaware.
