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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.
The agreement reinforces AstraZeneca’s focus on developing transformational medicines in its three main therapy areas (respiratory & autoimmunity, cardiovascular & metabolic diseases, and oncology), while realising value from the strong portfolio of established and late-stage small molecule antibiotics through Pfizer’s dedicated commercialisation and development capabilities in anti-infectives.
AstraZeneca’s established antibiotic medicines Merrem and Zinforo are available in more than 100 countries and generated Product Sales in 2015 of $250 million. The agreement does not impact AstraZeneca’s financial guidance for 2016.
MedImmune’s portfolio of biologics, on-market products such as FluMist/Fluenz and Synagis, and AstraZeneca’s stake in Entasis Therapeutics, spun-off from AstraZeneca in 2015 and now operating as a stand-alone company focused on the development of innovative small-molecule anti-infectives, are not included as part of the agreement.
