Data from Pharmawand - Curated by EPG Health - Date added 14 November 2018
AstraZeneca has agreed to sell US rights to Synagis (palivizumab) used for the prevention of serious lower respiratory tract infection (LRTI) caused by respiratory syncytial virus (RSV) to Swedish Orphan Biovitrum AB (publ) (Sobi). Sobi will commercialise Synagis in the US and around 130 AstraZeneca employees will transfer to Sobi as part of the transaction.
Sobi will also have the right to participate in AstraZeneca’s share of US profits and losses related to potential new medicine MED I8897. AstraZeneca will continue to develop MED I8897 in collaboration with Sanofi Pasteur, the vaccines division of Sanofi S.A. Under the agreement, AstraZeneca will receive an upfront consideration of $1.5 billion, consisting of $1.0bn in cash and $500m in ordinary shares of Sobi upon completion. This would equate to an ownership interest of 8%, based on the current Sobi share price. AstraZeneca has undertaken not to sell the shares received as consideration for a period of 12 months following the closing date of the transaction. The cash proceeds from the transaction will be used for general corporate purposes.
AstraZeneca will also receive up to $470 million in sales-related payments for Synagis, a $175 million milestone following the submission of the Biologics License Application for MED I8897; potential net payments of approximately $110 million on achievement of other MED I8897 profit and development-related milestones; and a total of $60 million in non-contingent payments for MED I8897 during 2019-2021.
Under the agreement, Sobi will have the right to participate in payments that may be received by AstraZeneca from the US profits or losses for MED I8897. The agreement is subject to customary closing conditions and is currently expected to complete very early 2019. AstraZeneca will provide additional information if closing conditions are achieved earlier and the agreement can complete late 2018.