Please login to the form below

Not currently logged in
Email:
Password:

AZ slims down again with sale of antibiotics to Pfizer

Deal does not include biologic anti-infective products from Medimmune unit

AstraZeneca global R&D corporate headquarters 

AstraZeneca has offloaded yet another business, this time selling its late-stage antibiotic assets to Pfizer in a deal worth up to $1.58bn.

The deal includes the approved antibiotics Merrem (meropenem), Zinforo (ceftaroline fosamil) and just-licensed Zavicefta (ceftazidime/avibactam), as well as two injectable antibiotic candidates - Allergan-partnered ATM-AVI (aztreonam/avibactam) and CXL (ceftaroline/avibactam).

ATM-AVI is in trials for life-threatening Gram-negative bacterial infections caused by multi-drug resistant (MDR) strains, while CXL has activity against MDR Gram-positive and Gram-negative pathogens.

The agreement does not include biologic anti-infective products coming from AZ's Medimmune unit - notably Synagis (palivizumab) for respiratory syncytial virus (RSV) infections and flu vaccine FluMist - or indeed a stake in anti-infectives firm Entasis Therapeutics which was spun-out by AZ last year.

Pfizer has already agreed a $14bn takeover of cancer specialist Medivation this week, but has ample cash in reserve despite also snapping up Hospira for $17bn last year. In May the big pharma company was estimated to be sitting on around $40bn - giving it plenty of scope to for pipeline-bolstering deals.

The terms of the latest AZ deal include an upfront payment of $500m, another unconditional payment of $175m in January 2019 and a total of $850m in regulatory and commercial milestones, as well as royalties on Zavicefta and ATM-AVI sales in some markets. 

The sale is the latest in a series of divestments by AZ as it narrows its focus to oncology, inflammation and autoimmunity and cardiovascular/metabolic diseases, and tries to meet chief executive Pascal Soriot's pledge to boost sales to $45bn by 2023.

The company has been steadily shedding older products as well as newer ones deemed to be surplus to requirements, freeing up cash for investment in its R&D pipeline and propping up cash flow in the face of a looming patent expiry for Crestor (rosuvastatin) in the US. 

Meanwhile, recent pipeline-boosting acquisitions have included a $2.7bn purchase of ZS Pharma, a majority stake in Acerta and a portfolio of respiratory drugs from Takeda.

Article by
Phil Taylor

24th August 2016

From: Sales

Share

Tags

COVID-19 Updates and Daily News

Featured jobs

PMHub

Add my company
Anthill Agency

Digital communications agency empowering clients through their digital transformation journey. Whether through training, delivering solutions or devising digital strategies, we...

Latest intelligence

Delivering true value: what does it mean for KAM in cancer care?
Lisa Alderson, Business Development Director at Wilmington Healthcare, explores the challenges that pharma’s KAM teams face in engaging with the NHS and how they must evolve...
Pharma M&A
Pharma funding and M&A in 2020
Why pharma M&A has continually bucked the trend...
Behaviour change through medical education: How can we turn aspiration into reality?
Practical, evidence-based insights into a CME process that aims to effect measurable behaviour change...

Infographics