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AstraZeneca enters agreement with Pfizer over antibiotics portfolio

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AstraZeneca announced it will sell the full commercialization and development rights of its late-stage small molecule antibiotics business to Pfizer, while AstraZeneca focuses on developing therapies for other main areas, according to a press release.

Pfizer will have commercialization rights to the following EMA- and/or FDA-approved antibiotics: Merrem (meropenem), Zinforo (ceftaroline fosamil) and Zavicefta (ceftazidime-avibactam), as well as developmental rights to ATM-AVI and CXL, which are currently in the pipeline. Pfizer will be able to sell to most markets globally outside the United States.

“This agreement reinforces our strategic focus to invest in our three main therapy areas where we can make the greatest difference to patients’ lives,” Luke Miels, MBA, AstraZeneca’s executive vice president for Europe and head of the Antibiotics Business Unit, said in the release. “We’re pleased that our strong science in antibiotics will continue to serve a critical public health need through Pfizer’s dedicated focus on infectious diseases, ensuring these important medicines reach greater numbers of patients around the world.”

Under the agreement, expected to close in the fourth quarter, Pfizer will make an upfront payment to AstraZeneca of $550 million upon completion and a further unconditional payment of $175 million in January 2019 for the commercialization and development rights to the late-stage antibiotics business in all markets where AstraZeneca holds the rights, the release said. In addition, Pfizer will have to pay up to $250 million in commercial, manufacturing and regulatory milestones, up to $600 million in sales-related payments as well as recurring, double-digit royalties on future sales of Zavicefta and ATM-AVI in certain markets.

“As we continue to reshape our Essential Health portfolio, we are focusing on areas that further address global public health needs and that complement our core capabilities and experience in therapeutic areas, including anti-infectives,” John Young, MBA, group president, Pfizer Essential Health, said in the release. “The addition of AstraZeneca’s complementary small molecule anti-infectives portfolio will help expand patient access to these important medicines and enhance our global expertise and offerings in this increasingly important area of therapeutics, in addition to providing the opportunity for near-term revenue growth.”

Disclosures: Miels is employed by AstraZeneca. Young is employed by Pfizer Essential Health.