AstraZeneca completes sale of rights to Pfizer

23rd Dec 2016 07:06

(ShareCast News) - AstraZeneca announced on Friday that it has completed the agreement with Pfizer for the sale of the commercialisation and development rights to its late-stage small molecule antibiotics business, comprising the approved antibiotics Merrem, Zinforo and Zavicefta, and ATM-AVI and CXL, which are in clinical development.The FTSE 100 company said under the agreement, AstraZeneca has received a payment of $550m for the commercialisation and development rights to the late-stage antibiotics business in all markets where AstraZeneca holds the rights.In addition, Pfizer will pay a further $175m in January 2019, up to $250m in commercial, manufacturing and regulatory milestones, up to $600m in sales-related payments as well as recurring, double-digit royalties on future sales of Zavicefta and ATM-AVI in certain markets."As AstraZeneca will not maintain a significant future interest in the late-stage small molecule antibiotics business, all payments will be reported as other operating income in the company's financial statements," its board said."The $550m upfront and $175m unconditional payment will both be booked in the fourth quarter of 2016, net of a product intangible."