AstraZeneca sells rights to anaesthetics products to Aspen for $520 million upfront
UK drug firm AstraZeneca (LSE: AZN) on Thursday said it has agreed to sell rights for its anaesthetics portfolio to Aspen Group for $520 million upfront.
In addition to the upfront amount the Aspen will pay AstraZeneca up to $250 million in a product sales-related payment, as well as double-digit percentage trademark royalties on product sales.
The agreement covers seven established medicines – Diprivan (general anaesthesia), EMLA (topical anaesthetic) and five local anaesthetics (Xylocaine/ Xylocard/ Xyloproct, Marcaine, Naropin, Carbocaine and Citanest).
Pascal Soriot, AstraZeneca’s chief executive, said: “AstraZeneca has a rich heritage in anaesthetic medicines and this agreement will extend the reach of our established portfolio to a greater number of patients through AGI’s extensive commercial network. This agreement supports our strategic focus on the new medicines in three main therapy areas.”
AstraZeneca will manufacture and supply the products on a cost plus basis to AGI for an initial period of 10 years. Upon completion, Aspen will assume responsibility for all activities relating to the sale of the portfolio in all relevant markets.
Stephen Saad, chief executive, Aspen, said: “This is a strategically-important investment for AGI and it is pleasing to have a company such as AstraZeneca recognise Aspen’s commercial competencies. This transaction is an excellent opportunity to build on the quality brands commercialised through AGI, working alongside an acknowledged pioneer and leader in the field of anaesthetics.”
AstraZeneca’s portfolio of anaesthetics generated product sales of $592 million in 2015.
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