LONDON (Alliance News) - AstraZeneca PLC said Monday it has completed an agreement to divest the prescription medicine rights to Nexium in Europe and the global rights, excluding the US and Japan, to Vimovo to Germany's Grunenthal.
The FTSE 100-listed pharma company - which focuses on oncology, cardiovascular, renal & metabolism and respiratory medicines - will get USD700 million for Nexium and will continue to commercialise the drug in all markets outside Europe.
AstraZeneca will receive USD115 million for Vimovo and will retain no ownership rights.
The upfront payments will be reported within Other Operating Income & Expense in the company's financial statements in the fourth quarter of 2018.
The book value of gross assets subject to the divestments was about USD99 million at the end of 2017, AstraZeneca said. For the year ended 2017, aggregate pretax profit attributable to Nexium and Vimovo was USD203 million.
Aachen, Germany-based Grunenthal is a pharmaceutical firm specialising in pain, gout and inflammation.
Nexium is used to treat gastroesophageal reflux disease, ulcers, and Zollinger-Ellison syndrome. Vimovo is a modified-release tablet with a fixed-dose combination of naproxen, a pain-relieving nonsteroidal anti-inflammatory drug and esomeprazole, the active ingredient in Nexium.
Vimovo is the symptomatic treatment of osteoarthritis, rheumatoid arthritis and ankylosing spondylitis.
Shares in AstraZeneca were up 0.7% Monday morning at 6,158.00 pence each.
Astrazeneca (AZN)