AstraZeneca offloads Europe and Russia rights to 'Seroquel' medicines
AstraZeneca has agreed the sale and licence of the commercial rights to ‘Seroquel’ - quetiapine fumarate immediate release - and ‘Seroquel XR’ - quetiapine fumarate extended release - in Europe and Russia to Cheplapharm Arzneimittel, it announced on Wednesday.
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The FTSE 100 pharmaceuticals giant said Seroquel and Seroquel XR, used primarily to treat schizophrenia and bipolar disorder, had lost their compound patent protection in Europe and Russia.
It said it would continue to manufacture and supply Seroquel and Seroquel XR to Cheplapharm during a transition period.
Cheplapharm would make an upfront payment of $178m to AstraZeneca, and could also make future sales-contingent payments of up to $61m.
Income arising from the upfront and future payments would be reported in AstraZeneca's financial statements within ‘other operating income and expense’.
In 2018, Seroquel generated annual product sales of $47m in the markets covered by the agreement, while Seroquel XR generated $61m.
The agreement would not impact AstraZeneca’s financial guidance for 2019, the board said, adding that the transaction was expected to complete in the fourth quarter of 2019, subject to customary closing conditions and regulatory clearances.
Seroquel and Seroquel XR are atypical antipsychotic medicines with antidepressant properties.
The main indications for Seroquel are the treatment of schizophrenia and bipolar disorder, while Seroquel XR is also approved in some markets for major depressive disorder and generalised anxiety disorder.
AstraZeneca had previously disposed of the rights to Seroquel and Seroquel XR in the UK, Japan and other major international markets.
“Seroquel is an important established medicine and this agreement with Cheplapharm will help ensure continued patient access,” said AstraZeneca’s executive vice-president of biopharmaceuticals.
“It forms part of our strategy of reducing the portfolio of mature medicines to enable reinvestment in our main therapy areas.”
As at 0853 GMT, shares in AstraZeneca were up 0.5% at 7,424p.