AstraZeneca to sell small molecule antibiotics business to Pfizer
AstraZeneca today announced that it has entered into an agreement with Pfizer to sell the commercialization and development rights to its late-stage small molecule antibiotics business in most markets globally outside the US.
The portfolio comprises the approved antibiotics Merrem, Zinforo and Zavicefta, and ATM-AVI and CXL, which are in clinical development.
Under the terms of the agreement, Pfizer will make an upfront payment to AstraZeneca of $550 million upon completion and a further unconditional payment of $175 million in January 2019 for the commercialization and development rights to the late-stage antibiotics business in all markets where AstraZeneca holds the rights.
In addition, Pfizer will pay up to $250 million in commercial, manufacturing and regulatory milestones, up to $600 million in sales-related payments as well as recurring, double-digit royalties on future sales of Zavicefta and ATM-AVI in certain markets.
The agreement reinforces AstraZeneca’s focus on developing transformational medicines in its three main therapy areas, while realizing value from the strong portfolio of established and late-stage small molecule antibiotics through Pfizer’s dedicated commercialization and development capabilities in anti-infectives, according AstraZeneca officials.
“This agreement reinforces our strategic focus to invest in our three main therapy areas where we can make the greatest difference to patients’ lives,” said Luke Miels, executive vice president for Europe and head of the Antibiotics Business Unit at AstraZeneca. “We’re pleased that our strong science in antibiotics will continue to serve a critical public health need through Pfizer’s dedicated focus on infectious diseases, ensuring these important medicines reach greater numbers of patients around the world.”