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AstraZeneca Sells Zurampic's EU and Latin American Rights
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AstraZeneca plc (AZN - Free Report) announced that it has entered into a licensing agreement with Grünenthal GmbH under which the latter will gain exclusive rights to the gout drug Zurampic (lesinurad) of the former in the EU, Switzerland, Iceland, Norway and Lichtenstein, and in all Latin-American countries including Mexico, the Dominican Republic and Cuba.
Grünenthal will also gain exclusive rights to the fixed-dose combination of Zurampic and allopurinol in these markets. Moreover, Grünenthal will seek approval for this combination, which is currently under development.
The deal will see AstraZeneca receiving sales and other related milestone payments of up to $230 million over the life of the contract plus tiered, low double-digit royalties on annual product sales. AstraZeneca will initially manufacture and supply Zurampic to Grünenthal and undertake the European post-approval commitment on Grünenthal’s behalf. Grünenthal will have the option to take over manufacturing of Zurampic, beginning Oct 1, 2021.
We note that Zurampic was approved in the EU in combination with a xanthine oxidase inhibitor, for the adjunctive treatment of hyperuricemia (excess of uric acid in the blood) in adults with uncontrolled gout in Feb 2016.
Meanwhile, revenues from the licensing agreement are expected to provide AstraZeneca with recurring externalisation revenue from any expected milestone payments and tiered, low double-digit percent royalty payments on product sales. However, the agreement is not expected to impact AstraZeneca’s financial guidance for 2016.
Zurampic’s U.S. Rights to Ironwood Completed
In a separate press release, AstraZeneca announced that it has completed the licensing agreement granting Ironwood Pharmaceuticals, Inc. (IRWD - Free Report) the exclusive U.S. rights to Zurampic. Ironwood also gained the rights to a fixed-dose combination of Zurampic and allopurinol, which is expected to be submitted for regulatory approval in the second half of 2016.
The divestment of Zurampic will allow AstraZeneca to focus on selected core therapeutic areas. Considering that several products in the company’s portfolio went off patent putting pressure on its top line, the company needs to expedite the development of its pipeline.
AstraZeneca is currently a Zacks Rank #3 (Hold) stock. Bristol-Myers Squibb Company (BMY - Free Report) and ANI Pharmaceuticals, Inc. (ANIP - Free Report) are a couple of better-ranked stocks in the health care sector, each sporting a Zacks Rank #1 (Strong Buy).
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AstraZeneca Sells Zurampic's EU and Latin American Rights
AstraZeneca plc (AZN - Free Report) announced that it has entered into a licensing agreement with Grünenthal GmbH under which the latter will gain exclusive rights to the gout drug Zurampic (lesinurad) of the former in the EU, Switzerland, Iceland, Norway and Lichtenstein, and in all Latin-American countries including Mexico, the Dominican Republic and Cuba.
Grünenthal will also gain exclusive rights to the fixed-dose combination of Zurampic and allopurinol in these markets. Moreover, Grünenthal will seek approval for this combination, which is currently under development.
The deal will see AstraZeneca receiving sales and other related milestone payments of up to $230 million over the life of the contract plus tiered, low double-digit royalties on annual product sales. AstraZeneca will initially manufacture and supply Zurampic to Grünenthal and undertake the European post-approval commitment on Grünenthal’s behalf. Grünenthal will have the option to take over manufacturing of Zurampic, beginning Oct 1, 2021.
We note that Zurampic was approved in the EU in combination with a xanthine oxidase inhibitor, for the adjunctive treatment of hyperuricemia (excess of uric acid in the blood) in adults with uncontrolled gout in Feb 2016.
Meanwhile, revenues from the licensing agreement are expected to provide AstraZeneca with recurring externalisation revenue from any expected milestone payments and tiered, low double-digit percent royalty payments on product sales. However, the agreement is not expected to impact AstraZeneca’s financial guidance for 2016.
Zurampic’s U.S. Rights to Ironwood Completed
In a separate press release, AstraZeneca announced that it has completed the licensing agreement granting Ironwood Pharmaceuticals, Inc. (IRWD - Free Report) the exclusive U.S. rights to Zurampic. Ironwood also gained the rights to a fixed-dose combination of Zurampic and allopurinol, which is expected to be submitted for regulatory approval in the second half of 2016.
The divestment of Zurampic will allow AstraZeneca to focus on selected core therapeutic areas. Considering that several products in the company’s portfolio went off patent putting pressure on its top line, the company needs to expedite the development of its pipeline.
AstraZeneca is currently a Zacks Rank #3 (Hold) stock. Bristol-Myers Squibb Company (BMY - Free Report) and ANI Pharmaceuticals, Inc. (ANIP - Free Report) are a couple of better-ranked stocks in the health care sector, each sporting a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>