(Alliance News) - AstraZeneca PLC on Thursday said it has completed the divestment of opioid-induced constipation drug Movantik to RedHill Biopharma.
The deal was announced in February with Redhill having agreed to pay Astra USD52.5 million upfront for the global rights - excluding Israel, Canada, and Europe - to the drug upon closure of the deal, plus another USD15 million non-contingent payment in 2021.
The USD52.5 million has now been paid with income from the upfront payment "offset by a charge for derecognition of the associated intangible asset". The future USD15 million will be reported in Astra's financial statements under "other operating income and expense".
Throughout the transition period, FTSE 100-listed drug maker Astra will keep manufacturing and supplying Movantik, the brand name for naloxegol. Movantik generated USD96 million worth of sales in the US in 2019.
Pharmaceutical major Astra signed a US co-commercialisation agreement for Movantik with Daiichi Sankyo Inc in 2015, which Astra will transfer to RedHill.
Shares in Astra were down 1.6% at 6,989.00 pence in London on Thursday.
By Anna Farley; annafarley@alliancenews.com
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Astrazeneca (AZN)