Pfizer Inc. (NYSE:PFE) has announced that it will be acquiring part of AstraZeneca plc (ADR)’s (NYSE:AZN) antibiotic business.
The deal between the two companies will have Pfizer buying the commercialization and development rights to AstraZeneca’s “late-stage small molecule anti-infectives business.” The deal majorly includes AZN’s business outside the United States, with many newly-approved drugs for the EU being mentioned.
Here are the antibiotic rights being acquired by Pfizer in the deal with AstraZeneca.
- Zinforo — Everywhere but North America and Japan, where Allergan plc Ordinary Shares (NYSE:AGN) and Takeda Pharmaceutical hold the rights, respectively.
- Zavicefta — AZN holds the global rights to this drug, except in North America, where Allergan has the rights.
- Merrem/Meronem — Sumitomo Dainippon Pharma holds these rights for Japan, China, Taiwan and Korea, but AstraZeneca owns the rest.
- ATM-AVI — Pfizer will be acquiring the rights for this drug everywhere but North America due to AGN having those.
- CXL — AGN also owns the rights to the drug in North America, but AZN owns the rest of the global rights.
Pfizer will drop a payment of $550 million for AstraZeneca’s antibiotics business. A deferred payment of $175 million will also be paid to the company in January 2019. There is also an agreement for up to $250 million in milestone payments and a maximum of $600 million in sales-related payments. AZN will also be eligible for royalties from sales of certain drugs in select areas.
Pfizer’s legal advisor for the deal is Ropes & Gray LLP. It expects the deal to close during the fourth quarter of 2016, if it receives approval from regulators. The company doesn’t expect the transaction will affect its 2016 financial guidance.
PFE and AZN shares were up slightly as of Wednesday morning.
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