(Alliance News) - AstraZeneca PLC on Wednesday said it has completed its divestment of rights to cholesterol drug Crestor in Europe to Grunenthal GmbH for up to USD350 million in cash.
The divestment covers more than 30 countries in Europe, though the UK and Spain were not included in the deal. FTSE 100 pharmaceutical firm Astra announced the deal in December.
In exchange for the rights, Astra already has received a USD320 million payment from Grunenthal for Crestor, brand name for rosuvastatin, and could be eligible for up to an additional USD30 million of future milestone payments. It will use the money "for general corporate purposes".
The upfront payment is to be reported in Cambridge, England-based Astra's financial statement under operating income and expense in the first 2021 quarter.
Crestor is a statin, a lipid-lowering drug aimed at preventing cardiovascular events like strokes and heart attacks. It blocks an enzyme in the liver, causing the liver to reduce cholesterol production, and also increases uptake and breakdown of cholesterol already in the blood by the liver. It is approved in more than 100 countries.
The gross book value of assets subject to the divestment was zero as of December 31. In 2019, the drug generated USD1356 million of product sales and a USD98 million pretax profit in the countries covered by the Grunenthal agreement.
Astra reports its annual 2020 results on Thursday.
Shares in AstraZeneca were marginally lower at 7,311.00 pence in London on Wednesday morning.
By Anna Farley; annafarley@alliancenews.com
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