AstraZeneca PLC (LON:AZN) has sold off the rights to two of its drugs for almost US$1bn to Grünenthal – the German pharma giant which first developed and sold thalidomide.
FTSE 100-listed Astra is selling the prescription medicine rights to its Nexium heartburn treatment in Europe for an initial US$700mln plus up to another US$90mln in milestone payments.
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It is also offloading the global rights to Vimovo, a treatment for arthritis, for US$115mln, which could also bring in another US$17mln in milestone payments over the next few years.
In total, Astra could net US$922mln from the disposals.
Neither of the drugs, which generated combined sales of US$158mln in the first half of 2018, fall into AstraZeneca’s three main focus areas of cancer, cardiovascular, and, renal and respiratory.
The UK drugs giant has been selling off lots of ‘non-core- drugs in recent years to help keep money flowing in while it spends millions developing its pipeline.
“The divestment agreements allow us to realise value from our successful medicines while redeploying our resources on developing innovative medicines for patients across our three main therapy areas, which we expect to drive growth for AstraZeneca,” said executive vice president Mark Mallon.
“[Grünenthal’s] expertise and distribution networks will help expand the commercial potential of both Nexium and Vimovo, helping to reach many patients who could benefit.”
Astra shares rose 1.3% to 5,939p in early deals on Tuesday.