AstraZeneca Divests Anesthesia Portfolio to AspenBy
AstraZeneca has entered into a commercialization agreement with Aspen Global Incorporated (AGI), part of the Aspen Group, for rights to its global anesthesia portfolio outside the US. The agreement covers seven established medicines: Diprivan (general anesthesia), EMLA (topical anesthesia) and five local anesthesics (Xylocaine/Xylocard/Xyloproct, Marcaine, Naropin, Carbocaine and Citanest).
Under the agreement, AGI will acquire the commercialization rights, outside the US, to AstraZeneca's portfolio of anesthesiamedicines for an upfront consideration of $520 million. Additionally, AGI will pay AstraZeneca up to $250 million in a product sales-related payment, as well as double-digit percentage trademark royalties on product sales. AstraZeneca will manufacture and supply the products on a cost plus basis to AGI for an initial period of 10 years. Upon completion, Aspen will assume responsibility for all activities relating to the sale of the portfolio in all relevant markets.
AstraZeneca's portfolio of anesthesia is available in over a hundred countries worldwide, including key markets such as China, Japan, Australia and Brazil. The portfolio continues to generate stable revenue, with global product sales in 2015 of $592 million. The US rights to the products were divested to Abraxis, now part of Fresenius Kabi, in 2006.
The transaction is subject to customary closing conditions and is anticipated to complete in the third quarter of 2016. AstraZeneca will retain a significant ongoing interest in the anesthesia portfolio through ongoing milestone and royalty payments and the manufacture and supply of the products to Aspen.