(RTTNews) - British drug major AstraZeneca (AZN.L, AZN) announced Wednesday that it has agreed the sale and licence of the commercial rights to Seroquel (quetiapine fumarate immediate release) and Seroquel XR (quetiapine fumarate extended release) in Europe and Russia to Cheplapharm Arzneimittel GmbH.
Under the deal, Cheplapharm will make an upfront payment of $178 million to AstraZeneca and may also make future sales-contingent payments of up to $61 million. The consideration will be paid in cash and the proceeds used for general corporate purposes.
The transaction is expected to complete in the fourth quarter of 2019, subject to customary closing conditions and regulatory clearances.
Seroquel and Seroquel XR, used primarily to treat schizophrenia and bipolar disorder, have lost their compound patent protection in Europe and Russia.
In the year 2018, the aggregate pre-tax profits attributable to Seroquel and Seroquel XR in the relevant territories were $86 million.
AstraZeneca will continue to manufacture and supply Seroquel and Seroquel XR to Cheplapharm during a transition period. The agreement does not impact AstraZeneca's financial guidance for 2019. The deal supports AstraZeneca's focus on main therapy areas. AstraZeneca has previously disposed of the rights to Seroquel and Seroquel XR in the UK, Japan and other major international markets.
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