AstraZeneca PLC (LSE:AZN) shares got a small boost as the UK's largest pharma company snapped up a licence for a drug that could lower cholesterol in the bloodstream, paying $100 million initially.
The FTSE 100 group struck an exclusive deal for a pre-clinical novel molecule that has shown it can prevent the formation of types of particles that carry cholesterol in the bloodstream, known as lipoproteins, a combination of fat and protein.
Chinese company CSPC Pharmaceutical discovered the molecule and has found that it can effectively prevent the formation of a certain type of lipoprotein that is associated with coronary artery disease and stroke.
AstraZeneca aims to develop the YS2302018 molecule into a potentially lucrative drug and will pay CSPC up to another $1.92 billion if and when it reaches certain development and commercial milestones, plus tiered royalty payments once sales start.
Sharon Barr, AZ's head of biopharmceuticals R&D, said: "This asset is an important addition to our cardiovascular pipeline and could help patients to more effectively manage their dyslipidaemia and related cardiometabolic diseases.
"Given the scale of unmet need, with cardiovascular disease being a leading cause of death globally, advancing novel therapies that can be used alone or in combination to effectively address known risk factors and advance patient care is particularly important and a key part of our strategy."
The Anglo-Swedish group said the asset further strengthens its cardiovascular portfolio, with its CVRM (Cardiovascular, Renal and Metabolism) business contributing £3.2 billion of second-quarter 2024 sales, or 22% of total group revenue growth in the first half of 2024.