(Sharecast News) - AstraZeneca, Swedish Orphan Biovitrum (Sobi) and Sanofi have simplified their contractual arrangements for the development and commercialization of nirsevimab in the US, they announced on Tuesday.
The move came ahead of the upcoming launch of nirsevimab in the United States and other markets.
AstraZeneca said the updated agreements were intended to clarify the roles and responsibilities of the parties involved.
Under the new arrangements, Sobi would now have a direct relationship with Sanofi, replacing the previous agreement with AstraZeneca that was signed in November 2018.
The earlier deal saw AstraZeneca provisioning the risk-adjusted value of discounted cash flow for future payments to Sobi as a liability, starting from the day of the transaction with Sobi.
However, under the new agreement, Sanofi would pay royalties to Sobi based on US nirsevimab sales, and the liability related to future obligations would be eliminated.
AstraZeneca said it would record a gain of $0.7bn under core other operating income in 2023, thanks to the simplification agreement.
However, it said the move would not impact its financial guidance for 2023.
At 1028 BST, shares in AstraZeneca were down 0.72% at 11,616p.
Reporting by Josh White for Sharecast.com.
Astrazeneca (AZN)