The FINANCIAL — AstraZeneca has agreed to sell the commercial rights to Atacand (candesartan cilexetil) and Atacand Plus (a fixed-dose combination of candesartan cilexetil and hydrochlorothiazide) in around 70 countries globally to Cheplapharm Arzneimittel GmbH (Cheplapharm).
Atacand is a prescription medicine approved for the treatment of heart failure (HF) and hypertension. Atacand Plus is approved for the treatment of hypertension.
Ruud Dobber, Executive Vice President, BioPharmaceuticals Business Unit, said: “This agreement forms part of our strategy to carefully manage the mature medicines, enabling reinvestment in our main therapy areas to bring innovative new medicines to patients. Cheplapharm previously acquired the rights to Atacand in Europe and will now ensure continued patient access to this important established medicine in additional countries across the globe.”
AstraZeneca will continue to manufacture and supply Atacand and Atacand Plus and will continue to commercialise the medicine during a three-year transition period. The agreement covers a total of more than 70 countries.1
Cheplapharm will pay AstraZeneca a total of $400m in non-contingent consideration, of which the present value will be recognised as Other Operating Income upon completion of the transaction, anticipated during the fourth quarter of 2020. The divestment will not impact the Company’s financial guidance for 2020.
Of the $400m consideration, $250m will be payable on completion and the remainder in the first half of 2021.
Pursuant to London Stock Exchange listing rule 10.4.1R (notification of class 2 transactions), in 2019, Atacand and Atacand Plus generated sales of $148m and profit before tax of $89m in the countries covered by the agreement. The gross book value of assets subject to the divestment as at 31 December 2019 was nil. The consideration will be paid in cash and the proceeds used for general corporate purposes.