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.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
This Black Friday and the following holiday season, retailers across the United States are urged to keep up their inventory amid expected surge in shopping as majority of Americans wait till last minute to fill their baskets, according to certain studies. A new Oracle Retail survey, which was conducted last week and presented earlier this week, showed that 66 percent of consumers were less than Eagle, Idaho -based Flagship Food Group is recalling certain TJ Farms Select brand frozen cauliflower, citing the potential to be contaminated with Listeria monocytogenes, the U.S. Food and Drug Administration said. The recall involves a limited number of cases of TJ Farms Select cauliflower that comes in 16 oz. packages with lot code 2077890089 and UPC code 75544000604-3. The U.S. Food and Drug Administration has approved Takeda Pharmaceuticals Co. Ltd.'s Livtencity (maribavir) as the first drug to treat post-transplant cytomegalovirus or CMV in adults and pediatric patients. The approval is to treat patients 12 years of age and older and weighing at least 35 kilograms with post-transplant CMV infection/disease that does not respond...
Follow RTT