AstraZeneca PLC AstraZeneca divests Seroquel rights: US and Canada (4612V)
December 03 2019 - 1:00AM
UK Regulatory
TIDMAZN
RNS Number : 4612V
AstraZeneca PLC
03 December 2019
3 December 2019 07:00 GMT
AstraZeneca divests rights to Seroquel and Seroquel XR in the US
and Canada
Sale to Cheplapharm supports AstraZeneca's focus on main therapy
areas
AstraZeneca has agreed to sell the commercial rights to Seroquel
(quetiapine fumarate immediate release) and Seroquel XR (quetiapine
fumarate extended release) in the US and Canada to Cheplapharm
Arzneimittel GmbH (Cheplapharm). Seroquel and Seroquel XR, used
primarily to treat schizophrenia and bipolar disorder, have lost
their compound patent protection in the US and Canada.
Ruud Dobber, Executive Vice President, BioPharmaceuticals
Business Unit, said: "This divestment supports our strategy of
reducing the number of mature medicines to enable reinvestment in
our main therapy areas. Cheplapharm recently agreed to acquire the
commercial rights to Seroquel and Seroquel XR in most European
markets and Russia from AstraZeneca and this new agreement will
help ensure continued patient access to this important established
medicine in North America as well."
AstraZeneca will continue to manufacture and supply Seroquel and
Seroquel XR to Cheplapharm during a transition period.
Financial considerations
Cheplapharm will make an upfront payment of $35m to AstraZeneca
and may also make future sales-contingent payments of up to $6m.
Income arising from the upfront and future payments will be
reported in AstraZeneca's financial statements within Other
Operating Income & Expense. In 2018, Seroquel generated sales
of $36m in the markets covered by this agreement, while Seroquel XR
generated $79m. The agreement does not impact the Company's
financial guidance for 2019. As there were no closing conditions to
the divestment, the agreement became effective upon signing.
Pursuant to Listing Rule 10.4.1R (notification of class 2
transactions), the gross book value of assets subject to the
divestment as at 31 December 2018 was nil. In the year to 31
December 2018, the aggregate profit before tax attributable to
Seroquel and Seroquel XR in the relevant territories were $108m.
The consideration will be paid in cash and the proceeds used for
general corporate purposes.
About Seroquel
Seroquel and Seroquel XR are atypical anti-psychotic medicines
with antidepressant properties. The main indications for Seroquel
are the treatment of schizophrenia and bipolar disorder. Seroquel
XR is also approved in some markets for major depressive disorder
and generalised anxiety disorder.
AstraZeneca previously divested the rights to Seroquel and
Seroquel XR in the UK, Japan and other major international markets.
AstraZeneca also agreed to divest the rights to the medicines in
Europe (excluding the UK) and Russia to Cheplapharm earlier in
2019, a transaction that is expected to complete in the fourth
quarter of 2019, subject to customary closing conditions and
regulatory clearances.
About AstraZeneca
AstraZeneca (LSE/STO/NYSE: AZN) is a global, science-led
biopharmaceutical company that focuses on the discovery,
development and commercialisation of prescription medicines,
primarily for the treatment of diseases in three therapy areas -
Oncology, Cardiovascular, Renal and Metabolism, and Respiratory.
AstraZeneca operates in over 100 countries and its innovative
medicines are used by millions of patients worldwide. Please visit
astrazeneca.com and follow the Company on Twitter @AstraZeneca.
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