Pfizer To Acquire AstraZeneca’s Small-Molecule Antibiotics Business in $1.6 Billion Deal

Pfizer has agreed to acquire the development and commercialization rights to AstraZeneca’s late-stage small-molecule anti-infectives business, primarily outside the United States, in a deal valued up to $1.575 billion.

The agreement includes the commercialization and development rights to the newly European Union (EU) approved drug Zavicefta (ceftazidime-avibactam), the marketed agents, Merrem/Meronem (meropenem), and Zinforo (ceftaroline fosamil), and the clinical development assets aztreonam-avibactam (ATM-AVI) and CXL. Zavicefta specifically addresses multi-drug resistant Gram-negative infections, including those resistant to carbapenem antibiotics, which addresses a medical need in bacterial infections treated with hospital anti-infectives.

Under the agreement, Pfizer will make an upfront payment of $550 million to AstraZeneca upon the close of the transaction and a deferred payment of $175 million in January 2019. In addition, AstraZeneca is eligible to receive up to $250 million in milestone payments, up to $600 million in sales-related payments, as well as tiered royalties on sales of Zavicefta and ATM-AVI in certain markets.

Zavicefta received European Commission approval for complicated urinary tract infections, complicated intra-abdominal infections, hospital- acquired pneumonia/ventilator associated pneumonia, and ‘treatment of aerobic gram negative infections in adult patients with limited treatment options in June 2016.

The transaction is expected to close in the fourth quarter of 2016, subject to customary closing conditions, including antitrust clearance in certain jurisdictions.

Source: Pfizer and AstraZeneca

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