AstraZeneca plc (LON:AZN) has agreed to sell the commercial rights of its Zoladex cancer treatment in the US and Canada to TerSera Therapeutics in a deal worth more than $320mln.
TerSera will pay Astra $250mln up front for Zoladex, an injectable drug used to treat malignant prostate and breast cancer.
Astra will receive up to a further $70mln in income from sales if milestones are met. Product sales in 2016 for the drug amounted to $69mln in the US and Canada, and $816mln globally.
The company will manufacture and supply Zoladex to TerSera and will continue to commercialise the medicine in all markets outside of the US and Canada.
"This agreement allows us to retain a significant share of the value of Zoladex in the US and Canada, while concentrating our resources on our innovative new oncology medicines,” said Mark Mallon, executive vice president of global product and portfolio strategy at Astrazeneca.
“It also ensures patients have continued access to Zoladex, with TerSera's dedicated focus helping to expand the potential of this important medicine."
The deal is expected to be complete in the first quarter of 2017.
The announcement comes after Astra on Friday revealed positive results from phase 3 trials of breast cancer treatment Lynparza, which sent shares higher.
Shares edged back 0.61% to 4,567.50p in late morning trade today.