AstraZeneca has sold to Pfizer the commercialization and development rights of its late-stage small molecule antibiotics business, comprising the approved antibiotics Merrem, Zinforo and Zavicefta, and ATM-AVI and CXL, which are in clinical development.
The sale could amount to more than a billion dollars, as AstraZeneca has received a payment of $550 million already for all markets where it holds the rights. In addition, Pfizer will pay a further $175 million in January 2019, up to $250 million in commercial, manufacturing and regulatory milestones, up to $600 million in sales-related payments as well as recurring, double-digit royalties on future sales of Zavicefta and ATM-AVI in certain markets.
AstraZeneca will book the $550 million upfront and $175 million unconditional payment in the fourth quarter of 2016.
Group president of Pfizer Essential Health, John Young, said: “The addition of AstraZeneca’s complementary small molecule anti-infectives portfolio enhances our global expertise and offerings in an increasingly important area of therapeutics that addresses the public health needs of patients and healthcare professionals. Additionally this acquisition is an example of how we are focusing our investments to drive sustainable revenue growth potential for our Essential Health business.”