AstraZeneca offloads 'Seroquel' rights in Europe and Russia
AstraZeneca has completed an agreement to divest its commercial rights to Seroquel - quetiapine fumarate immediate release - and Seroquel XR - quetiapine fumarate extended release - in Europe and Russia, it announced on Monday, to Cheplapharm Arzneimittel.
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The FTSE 100 pharmaceuticals giant said that, under the terms of the agreement, it has received a payment of $178m from Cheplapharm.
It said it could also receive future sales-contingent payments of up to $61m.
The upfront payment would be reported in AstraZeneca's financial statements within ‘other operating income and expens’ in the fourth quarter of 2019.
Under listing Rule 10.4.1R, AstraZeneca said the gross book value of assets subject to the divestment as at 31 December 2018 was nil.
In the year ended 31 December 2018, the aggregate profit before tax attributable to Seroquel and Seroquel XR in the relevant territories was $86m.
The consideration was paid in cash and the proceeds would be used for general corporate purposes, the company explained.
“Seroquel and Seroquel XR are atypical anti-psychotic medicines with antidepressant properties,” the AstraZeneca board said in its statement.
“The main indications for Seroquel are the treatment of schizophrenia and bipolar disorder.
“Seroquel XR is also approved in some markets for major depressive disorder and generalised anxiety disorder.”
AstraZeneca had previously divested the rights to Seroquel and Seroquel XR in the UK, Japan and other major international markets.
It also agreed to divest the rights to the medicines in the US and Canada to Cheplapharm earlier in 2019.
At 0841 GMT, shares in AstraZeneca were up 1.25% at 7,307p.