AstraZeneca PLC (LSE:AZN), Swedish Orphan Biovitrum AB (Sobi) and Sanofi have updated and simplified their agreements relating to the development and commercialisation of nirsevimab in the US.
As a result of this simpler agreement, AstraZeneca will record a gain of US$0.7bn, to be recognised in core other operating income in 2023.
The Anglo-Swedish pharma giant said this does not impact financial guidance for 2023.
Nirsevimab is designed to protect newborns and infants during their first respiratory syncytial virus (RSV) and children up to 24 months of age who remain vulnerable to severe RSV disease.
Under the new arrangements, Sobi has entered into a direct relationship with Sanofi, replacing the previous participation agreement with AstraZeneca agreed in November 2018.
Under the previous deal, AstraZeneca had to provision the risk adjusted value of the discounted cash flow of future payments to be made to Sobi as a liability.