AstraZeneca divestment of Movantik to RedHill Biopharma completed
AstraZeneca has completed the previously communicated agreement (https://www.astrazeneca.com/media-centre/press-releases/2020/astrazeneca-divests-global-rights-to-movantik-25022020.html) to sublicense its global rights to Movantik (naloxegol), excluding Europe, Canada and Israel, to RedHill Biopharma (RedHill).
AstraZeneca will continue to manufacture and supply Movantik to RedHill during a transition period. In 2015, AstraZeneca entered into a co-commercialisation agreement with Daiichi Sankyo, Inc. for Movantik in the US, which has now been transferred to RedHill.
Financial considerations
Under the terms of the agreement, AstraZeneca has received a payment of $52.5m from RedHill. The Company will also receive a further non-contingent payment of $15m in 2021. Income arising from the upfront payment, offset by a charge for derecognition of the associated intangible asset, and the future payment will be reported in AstraZeneca's financial statements within Other Operating Income & Expense. In 2019, Movantik generated sales of $96m in the US. The agreement will not impact the Company's financial guidance for 2020.
Movantik
Movantik (naloxegol) is a once-daily oral peripherally acting mu-opioid receptor antagonist approved by the US Food and Drug Administration for the treatment of OIC in adult patients with chronic non-cancer pain. Movantik was licensed from Nektar Therapeutics in 2009. It was developed using Nektar's oral small-molecule polymer conjugate technology. In 2016, AstraZeneca divested the rights in Europe to ProStrakan Group (now KKI) and the rights in Canada and Israel to Knight Therapeutics.
AstraZeneca
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. Based in Cambridge, UK, AstraZeneca operates in over 100 countries and its innovative medicines are used by millions of patients worldwide. Please visit astrazeneca.com (http://www.astrazeneca.com/) and follow the Company on Twitter @AstraZeneca (https://twitter.com/AstraZeneca).
Contacts
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