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 to Cheplapharm Arzneimittel GmbH (Cheplapharm).
Under the terms of the agreement, AstraZeneca has received a payment of $178m from Cheplapharm. The Company may also receive future sales-contingent payments of up to $61m. The upfront payment will be reported in AstraZeneca’s financial statements within Other Operating Income & Expense in the fourth quarter of 2019.
Pursuant to Listing Rule 10.4.1R (notification of class 2 transactions), the gross book value of assets subject to the divestment as at 31 December 2018 was nil. In the year to 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 will be used for general corporate purposes.
Seroquel and Seroquel XR are atypical anti-psychotic medicines with antidepressant properties. 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 previously divested the rights to Seroquel and Seroquel XR in the UK, Japan and other major international markets. AstraZeneca also agreed to divest the rights to the medicines in the US and Canada to Cheplapharm earlier in 2019.
AstraZeneca (LSE/STO/NYSE: AZN) is a global, science-led biopharmaceutical company that focuses on the discovery, development and commercialisation of prescription medicines, primarily for the treatment of diseases in three therapy areas – Oncology, Cardiovascular, Renal and Metabolism, and Respiratory. AstraZeneca operates in over 100 countries and its innovative medicines are used by millions of patients worldwide.