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(Alliance News) - AstraZeneca PLC on Tuesday announced the sale of its rights to Crestor and associated medicines in 30 countries in Europe except for the UK and Spain to German pharmaceutical firm Grunenthal GmbH.
Crestor is a statin, or lipid-lowering medicine, which is used to treat blood lipid disorders and prevent cardiovascular events, such as strokes and heart attacks. Crestor works by blocking an enzyme in the liver, causing it to make less cholesterol, and raises the uptake and breakdown by the liver of cholesterol.
Grunenthal will make an upfront payment of USD320 million and may also make future contingent payments of up to USD30 million. The sale is expected to be completed in the first quarter of 2021, subject to regulatory approval.
Astra will continue to manufacture and supply Crestor to Grunenthal during a transition period, and will also continue selling the medicine in other countries, including North America, Japan, China and other markets.
In 2019, Crestor generated USD98 million in pretax profit and USD136 million in product sales.
"This agreement supports the management of our mature medicines to enable reinvestment into the pipeline and bringing new, innovative treatments to patients. Grunenthal previously acquired the rights to several established AstraZeneca medicines and is well placed to ensure continued access to Crestor for patients across Europe," said Ruud Dobber, executive vice president of Astra's BioPharmaceuticals Unit.
Shares in AstraZeneca were up 1.6% at 7,933.00 pence on Tuesday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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