AstraZeneca Plans To Raise Up To $3.5 Bln To Fund Daiichi Sankyo Deal

British drug major AstraZeneca Plc (AZN.L,AZN) announced Friday its intention to raise up to approximately $3.5 billion through a placing of new ordinary shares in the Company with both existing and new institutional investors.

The company plans to use the net proceeds of the proposed Placing to fund upfront and near-term payments in respect of the Company's global development and commercialisation collaboration agreement with Daiichi Sankyo Co. (DSKYF.PK) for trastuzumab deruxtecan (DS-8201) .

The proceeds will also be used for the repayment of the Company's $1 billion, 1.95% notes due on September 18, 2019; and for general corporate purposes, to improve the Company's overall balance-sheet strength and liquidity.

The net impact of the deal and the Placing is expected to be neutral to AstraZeneca's Core Earnings Per Share in 2019, growing Core EPS accretion from 2020 to a significant contribution in 2023.

Further, AstraZeneca reconfirmed its 2019 Product Sales and Core EPS guidance at constant exchange rates post-placing and transaction and confirms there is no change to the Company's progressive dividend policy.

The Transaction will become effective on March 29, 2019. The Placing is not conditional on completion of the Transaction.

AstraZeneca said the collaboration with Daiichi Sankyo is expected to reinforce its science-led strategy in Oncology that is based on four key scientific platforms. It is also consistent with the Company's financial objectives and investment priorities.

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