AstraZeneca in rights deal with TerSera on cancer treatment
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AstraZeneca said it had completed an agreement with TerSera Therapeutics for the commercial rights to its cancer treatment Zoladex in the US and Canada.
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Under the terms of the agreement, AstraZeneca has received a payment of $250m from TerSera. It will receive future sales-related income through milestones up to $70m, as well as recurring quarterly sales-based payments at “mid-teen percent of sales”.
AstraZeneca will also manufacture and supply Zoladex to TerSera, providing a further source of ongoing income from Zoladex in the US and Canada.
Zoladex is an injectable luteinising hormone-releasing medicine, used to treat prostate cancer, breast cancer and certain benign gynaecological disorders. It was first approved in the US and Canada in 1989.
As AstraZeneca will maintain a significant ongoing interest in Zoladex in the US and Canada, the payment will be reported as externalisation revenue in the company's financial statements, and will be booked in the first quarter of 2017.