AZ unloads antibiotics to Pfizer

Just days after shelling out US$14bn (€12.4bn) for fought-over Californian biotech Medivation, Pfizer is taking AstraZeneca’s antibiotics business off the British-Swedish pharma company’s hands. AZ will get up to US$1.5bn (€1,32bn) out of the deal. “This agreement reinforces our strategic focus to invest in our three main therapy areas,” stressed Luke Miels, Executive VP for Europe and Head of the Antibiotics Business Unit at AstraZeneca.

Under the agreement, AstraZeneca sells the commercialisation and development rights to its late-stage small molecule antibiotics business in most markets globally outside the US. The portfolio comprises the approved antibiotics Merrem, Zinforo and Zavicefta, as well as the products ATM-AVI and CXL, which are in clinical development. Pfizer will pay US$550m (€485m) upfront, plus another US$175m (€154m) in January 2019. In addition, Pfizer will pay up to US$250m (€221m) in commercial, manufacturing and regulatory milestones, up to US$600m (€529m) in sales-related payments as well as recurring, double-digit royalties on future sales of Zavicefta and ATM-AVI in certain markets.

MedImmune’s portfolio of biologics, on-market products such as FluMist/Fluenz and Synagis, and AstraZeneca’s stake in Entasis Therapeutics are not included as part of the agreement.

Pfizer has long had its eyes on AZ’s assets. In 2014, Pfizer made a grab for the company for US$100bn, but was ultimately turned down.