AstraZeneca offloading rights to two non-core drugs

30th Oct 2018 07:12

(Sharecast News) - AstraZeneca has agreed to divest the prescription medicine rights to Nexium (esomeprazole) in Europe, as well as the global rights - excluding the US and Japan - to Vimovo (naproxen/esomeprazole), to Grünenthal, it announced on Tuesday.The FTSE 100 pharmaceuticals giant said the medicines were outside its three main therapy areas of oncology, cardiovascular, renal and metabolism, and respiratory.Nexium had lost compound patent protection in the majority of global markets, while Vimovo ws patent protected in most European markets until 2025.AstraZeneca said the divestment was expected to complete this year.For Nexium, Grünenthal would make an upfront payment of $700m upon completion, and AstraZeneca could also receive future milestones and sales-related payments of up to $90m.Grünenthal would make an upfront payment of $115m on completion for Vimovo, and AstraZeneca said it could also receive future milestones and sales-related payments of up to $17m for that drug.Upfront and milestone payments would be reported as other operating income in the company's financial statements.AstraZeneca said it would continue to commercialise Nexium in all markets outside Europe, where it retained the rights.On completion of the agreements, it would not retain any ownership rights to Vimovo globally, or to Nexium in Europe.Nexium sales in Europe in the first half were $121m, and Vimovo global sales excluding the US and Japan in the same period were $37m.AstraZeneca said it would continue to manufacture and supply Nexium under a long-term supply agreement.It explained that Nexium, a proton pump inhibitor developed by AstraZeneca, helped to reduce the amount of acid produced by the stomach in patients with gastrointestinal reflux conditions and ulcers.The drug had a number of indications, including the prevention and treatment of gastric ulcers induced by pain-relieving non-steroidal anti-inflammatory drugs (NSAIDs).Vimovo, meanwhile, was described as a modified-release fixed-dose combination tablet of naproxen - a pain-relieving NSAID - and esomeprazole, for the treatment of various inflammatory diseases, including osteoarthritis, rheumatoid arthritis and ankylosing spondylitis in patients at risk of developing NSAID-associated gastric ulcers and/or duodenal ulcers."The divestment agreements allow us to realise value from our successful medicines while re-deploying our resources on developing innovative medicines for patients across our three main therapy areas, which we expect to drive growth for AstraZeneca," said AstraZeneca's executive vice-president of global product and portfolio strategy Mark Mallon."Grünenthal is a science-based pharmaceutical company specialised in innovative pain management and related therapies. Its expertise and distribution networks will help expand the commercial potential of both Nexium and Vimovo, helping to reach many patients who could benefit."