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Summary
- Of late, AstraZeneca inked an agreement to sell the rights of hypertension drugs Atacand and Atacand Plus to Cheplapharm.
- Under this agreement, Cheplapharm would pay US$400 million to AstraZeneca.
- The agreement is likely to be completed during the fourth quarter of 2020.
AstraZeneca Plc (LON:AZN) disclosed that it signed an agreement to sell the commercial rights of its hypertension medicines Atacand and Atacand Plus to Cheplapharm Arzneimittel GmbH, a German pharmaceutical company. Cheplapharm would pay a total of US$400 million to AstraZeneca.
Let us discuss the agreement in detail-
About AstraZeneca Inc
Global, science-led biopharmaceutical player AstraZeneca is engaged in the development and commercialisation of prescription medicines for the treatment in the fields of- Respiratory & Immunology, Cardiovascular, Oncology, and Renal & Metabolism.
AstraZeneca is one of the top pharmaceutical manufacturers with a potential COVID-19 vaccine under late-stage clinical development.
AstraZeneca’s Agreement with Cheplapharm for US$400 million
On 30 October 2020, AstraZeneca updated the market that the Company had signed an agreement to sell the commercial rights of its two hypertension drugs Atacand and Atacand Plus to Cheplapharm. With this agreement, Atacand is to be divested to Cheplapharm in over seventy nations across the world.
AstraZeneca said that this agreement provides support to the strategy to focus on new drugs in main therapy areas.
Executive Vice President, BioPharmaceuticals Business Unit of AstraZeneca, Ruud Dobber commented-
AstraZeneca will continue manufacturing along with supply of both the drugs. The Company would also persist to commercialise the medicine during the transition period of three years. The Company also mentioned that this agreement covers more than 70 nations.
Atacand (candesartan cilexetil) drug is approved for heart failure (HF) and hypertension treatment. The other drug Atacand Plus is a combination of hydrochlorothiazide and candesartan cilexetil and approved for the treatment of hypertension.
The agreement is anticipated to be completed during the fourth quarter of 2020, and Cheplapharm will pay a total of US$400 million to AstraZeneca in non-contingent consideration.
Additionally, AstraZeneca mentioned that the divestment would not have any impact on the Company’s financial guidance for 2020. The amount would be paid in cash and the proceeds are to be utilised for general corporate purposes.
Moreover, AstraZeneca is one of the top contenders in the list of developing a potential COVID-19 vaccine, which is under late-stage clinical development. Lately, the Company stated that the Medicines and Healthcare Products Regulatory Agency (MHRA) commenced an accelerated review of its COVID-19 vaccine, paving the way for its early launch.
READ MORE: AstraZeneca’s Potential Covid-19 Vaccine Goes Under Accelerated Review
On 2 November 2020, AstraZeneca’s share price was at US$50.62 on NASDAQ, up by 0.92% from its last close.