AstraZeneca To Buy Actavis' U.S. Respiratory Portfolio - Quick Facts

(RTTNews) - UK-based drugmaker AstraZeneca Plc (AZN.L, AZN) and Specialty pharmaceutical company Actavis Plc (ACT) have inked a definitive deal, pursuant to which AstraZeneca would acquire the rights to Actavis' branded respiratory business in the U.S. and Canada for an initial consideration of $600 million on completion and low single-digit royalties above a certain revenue threshold.

Upon completion, AstraZeneca would own the development and commercial rights in the U.S. and Canada to Tudorza Pressair, a twice-daily long-acting muscarinic antagonist (LAMA) for chronic obstructive pulmonary disease or COPD, and Daliresp, the only once-daily oral PDE4 inhibitor currently on the market for COPD. Also, AstraZeneca would own development rights in the U.S. and Canada for LAS40464, the combination of a fixed dose of aclidinium with formoterol long acting beta agonist (LAMA/LABA) in a dry powder inhaler, which is approved in the EU under the brand name Duaklir Genuair.

The acquisition of Tudorza Pressair and Daliresp would instantly add on-market revenues and complements AstraZeneca's respiratory portfolio by broadening the choice of treatments and formulations offered to patients and physicians. The two products had combined annual sales of nearly $230 million in 2014 in the U.S.

In addition, AstraZeneca would pay Actavis an additional $100 million and Actavis has agreed to a number of contractual consents and approvals, including certain amendments to the ongoing collaboration agreements between AstraZeneca and Actavis.

The transaction may close in the first quarter of 2015.