Ad Header

PharmaLive

Slogan

The Pulse of the Pharmaceutical Industry

Sobi buys rights to AstraZeneca infant drug

Written by: | no-reply@reuters.com | Dated: Tuesday, November 13th, 2018

 

Sobi buys rights to AstraZeneca infant drug for $1.5 billion upfront

 

LONDON (Reuters) – AstraZeneca (AZN.L) has taken another step to refocus on priority drugs by selling U.S. rights to a treatment for infant lung infections to Swedish Orphan Biovitrum (SOBIV.ST) for an upfront fee of $1.5 billion.

Around 130 AstraZeneca staff will transfer to Sobi as the Swedish company, widely known as Sobi, takes over marketing of the treatment Synagis in the United States.

The move is a significant commercial boost for rare diseases specialist Sobi, giving it a substantially increased U.S. footprint and expanding its business in immunology, and its shares jumped more than 6 percent.

Sobi also gets the right to participate in AstraZeneca’s share of U.S. profits and losses in a follow-on drug for respiratory syncytial virus, called MEDI8897, which AstraZeneca is developing with Sanofi (SASY.PA), the companies said.

AstraZeneca will receive $1 billion in cash and $500 million in Sobi shares, equal to a stake of 8 percent in the Swedish group.

The British drugmaker is also entitled to further contingent payments. It will get up to $470 million in sales-related payments for Synagis, a $175 million milestone when MEDI8897 is filed for U.S. approval, and other potential payments related to the new drug of up to $170 million.

 

Reporting by Ben Hirschler, editing by Louise Heavens and Susan Fenton

 

Reuters source:

https://www.reuters.com/article/us-astrazeneca-divestiture-swedish-orpha/sobi-buys-rights-to-astrazeneca-infant-drug-for-1-5-billion-upfront-idUSKCN1NI0QR

Ad Right Top

MedAdNews

Extensive pharmaceutical business and marketing intelligence. For back issues, please contact MDAD@kmpsgroup.com.

February 2019 Focus: Agenda 2019, Top 10 Pipelines To Watch, Value Of Pharmaceuticals, and more!

Subscribe

Ad Right Bottom