Pfizer buys AstraZeneca's small molecule antibiotics business for $ 725 mn

Pfizer Inc has acquired AstraZeneca’s commercialisation and development rights to its late-stage small molecule antibiotics business in most markets globally outside the US for $ 725 million. 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 commercialisation 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.