By RTT News,
December 27, 2013, 03:55:00 AM EDT
(RTTNews.com) - AstraZeneca Plc (AZN.L, AZN) and Shionogi & Co. Ltd. Friday announced extension of Crestor licence agreement and full resolution of arbitration proceedings related to treatment of certain excise taxes and other specific items in calculation of royalties on Crestor sales.
The companies said they have extended global licence agreement for Crestor as well as modified the royalty structure, effective January 1, 2014.
Crestor (rosuvastatin calcium) is a prescription drug used to treat high cholesterol, which is licensed from Shionogi & Co., Osaka, Japan.
According to the firms, the new agreement provides greater certainty for each of the parties in terms of the quantum of royalties due under the agreement and the period over which they will be payable.
Under the revised terms of the agreement, the structure of royalty payments from AstraZeneca to Shionogi has been modified to reduce the effective royalty rate in 2014-2015; the amount of this royalty rate reduction will be a low single-digit number.
The agreement will extend the period of royalty payments from 2016 to 2023, guaranteeing a fixed minimum annual royalty to Shionogi from 2014 until 2020 in the low hundreds of millions of dollars while also providing for maximum royalty payments during the period 2016 to 2020 inclusive, the companies stated.
AZN closed Thursday's regular trading at $59.11 on the NYSE. In London, AZN.L is currently trading at 3,595 pence, down 0.47 percent.
For comments and feedback: contact email@example.com