Plus   Neg

AstraZeneca To Sublicense Worldwide Rights To Movantik To RedHill Biopharma

British drug major AstraZeneca (AZN,AZN.L) said Tuesday it has agreed to sublicense its global rights to Movantik, a peripherally acting mu-opioid receptor antagonist indicated for the treatment of opioid-induced constipation, to RedHill Biopharma.

As part of the deal, which excludes Europe, Canada and Israel, AstraZeneca will continue to manufacture and supply Movantik to RedHill during a transition period. Earlier in 2015, AstraZeneca entered into a co-commercialisation deal with Daiichi Sankyo for Movantik in the US, which will be transferred to RedHill.

With regards to financial terms of the deal, RedHill will make an upfront payment of $52.5 million to AstraZeneca, upon closing, and a further non-contingent payment of $15 million in 2021.

Meanwhile, profit arising from the upfront payment, after taking a charge for derecognition of the associated intangible asset, and the future payment will be reported in AstraZeneca's financial statements.

The divestment is expected to be complete in the first quarter of 2020, subject to customary closing conditions and regulatory clearances. Upon completion, the deal will not impact the Company's financial guidance for 2020, Astrazenenca reported.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
The media mogul and Billionaire Sumner Redstone passed away on Tuesday at the age of 97, his family's holding company National Amusements said in a statement on Wednesday. He was Chairman Emeritus of ViacomCBS and chief executive officer of National Amusements. Customers in the U.S. are preferring digital or touchless payment methods due to concerns arising from the COVID-19 pandemic, a survey said. According to the survey by Rapyd Financial Network, the coronavirus pandemic has raised health and safety concerns around using cash and coins, and is accelerating the pre-existing trend toward digital transactions. American Airlines has extended its offer to waive change fees for customers who purchase tickets for travel, until December 31, 2020 in response to lower travel demand due to the coronavirus pandemic. This means that the travelers need not pay penalties for changing the origin and destination cities.
Follow RTT