Pfizer To Acquire Rights To AstraZeneca's Antibiotics Business
Zacks Investment Research | Aug 24, 2016 07:14AM ET
Pfizer Inc. (NYSE:PFE) announced that it has entered into an agreement to acquire the rights to AstraZeneca plc’s (NYSE:AZN) late-stage small-molecule anti-infectives business, primarily in the ex-U.S. markets.
The transaction will give Pfizer the rights to Zavicefta, which gained approval in the EU in Jun 2016, for complicated urinary tract infections (cUTI), complicated intra-abdominal infections (cIAI), hospital-acquired pneumonia/ventilator-associated pneumonia (HAP/VAP), and for the treatment of aerobic gram-negative infections in adult patients with limited treatment options.
The portfolio also includes marketed agents, Merrem/Meronem and Zinforo; and pipeline candidates, ATM-AVI and CXL.
Under the terms of the agreement, AstraZeneca will receive an upfront payment of $550 million from Pfizer upon the closing of the transaction. Pfizer will also make a deferred payment of $175 million in Jan 2019. Moreover, AstraZeneca is eligible to receive up to $250 million in milestone payments, and up to $600 million in sales-related payments from Pfizer. In addition, AstraZeneca will earn tiered royalties on sales of Zavicefta and ATM-AVI in certain markets.
The transaction is slated to close in the fourth quarter of 2016.
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