AstraZeneca signs deals to increase anti-infective portfolio
pharmafile | January 7, 2010 | News story | Research and Development, Sales and Marketing | AstraZeneca, Forest, Novexel
AstraZeneca is to buy infection research firm Novexel for $350 million.
The manufacturer will take all the French company’s shares for this cash payment, and has lined up a further $75 million if development milestones are reached.
It will also pay another $80 million or so to reflect Novexel’s cash balance at closing.
In a separate deal, AstraZeneca is to extend its collaboration with Forest Laboratories to develop and commercialise two late-stage antibiotics.
Ceftazidime/NXL-104 (CAZ104) and ceftaroline/NXL-104 (CEF104) both use Novexel’s novel investigational beta-lactamase inhibitor NXL-104.
Overcoming bacterial resistance is the Holy Grail in this area, and the companies hope NXL-104 will treat the increasing number of infections resistant to existing therapies.
CAZ104 is expected to move into phase III towards the end of this year, with US and EU filing planned for 2012.
It will be developed for serious infections requiring intensive care stays such as intra-abdominal, urinary tract and hospital acquired pneumonia.
The companies want CEF104 to be in phase II by late 2010 and are eyeing indications for skin and diabetic foot infections.
“Building AstraZeneca’s anti-infective portfolio has become a strategic priority as antibiotic-resistant bacteria poses a growing threat to human health,” said Anders Ekblom, AstraZeneca executive vice president of development.
Forest will pay Novexel, then an AstraZeneca group company, a sum equal to half of the acquisition costs of Novexel and half of any such specified development milestone payments in return for rights to CAZ104 in North America and the buy down of payment obligations in relation to CEF104 to Novexel from previous existing license arrangements.
Forest will acquire North American rights to CAZ104 in return for a payment to Novexel, once it is an AstraZeneca company, that is equal to half of AZ’s costs of acquiring the French firm.
Forest will also pay half of any specified development milestone payments.
The comapny will also make payments in relation to CEF104 to Novexel, following on from an agreement the company signed in January 2008 granting rights to develop the drug in North America.
AstraZeneca agreed with Forest in August 2009 to secure the rights to commercialise CEF104 outside North America and Japan.
“The innovative structure of this agreement allows us to build on our existing collaboration with Forest to create value, share costs, and reduce exposure to risk,” added Ekblom.
“Utilising Novexel’s NXL-104, these combinations have the potential to outwit bacteria that would otherwise be resistant to antibiotics.”
Development costs of the two combination treatments will be shared between Forest (which has North American rights) and AstraZeneca (rights everywhere else, except Japan where Takeda has ceftaroline).
AstraZeneca will also pay undisclosed royalties to Forest on international sales of CEF104.
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