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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.

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