AstraZeneca Sells Antibiotics Business to Pfizer

August 24, 2016
Pharmaceutical Technology Editors

The portfolio in this agreement include approved antibiotics Merrem, Zinforo, and Zavicefta, as well as candidates in clinical development, ATM-AVI and CXL.

AstraZeneca has agreed to sell its late-stage small-molecule antibiotics business to Pfizer. The assets include approved antibiotics Merrem, Zinforo, and Zavicefta, as well as candidates in clinical development, ATM-AVI and CXL.

Under the terms of the agreement, Pfizer will make an upfront payment of $550 million to AstraZeneca upon completion and a further unconditional payment of $175 million in January 2019 for the commercialization and development rights to the late-stage antibiotics business in all markets where AstraZeneca holds the rights. Pfizer will also pay up to $250 million in commercial, manufacturing, and regulatory milestones, up to $600 million in sales-related payments as well as recurring, double-digit royalties on future sales of Zavicefta and ATM-AVI in certain markets.

According to AstraZeneca, this divestment will enable the British drugmaker to concentrate its R&D efforts in three main therapy areas-oncology, respiratory and cardiovascular diseases. Pfizer’s focus on infectious diseases, meanwhile, will enable greater patient access to the antibiotics and maximize the potential of the late-stage, small molecule antibiotics business.

MedImmune’s biologics portfolio, however, are not included in this deal. AstraZeneca’s stake in Entasis Therapeutics, which spun off from AstraZeneca in 2015 and now operating as a stand-alone company focused on the development of innovative small-molecule anti-infectives, are also not included as part of the agreement. The deal is expected to close in the fourth quarter of 2016.

Source: AstraZeneca