US deal for AstraZeneca

PHARMA giant AstraZeneca has sold part of its antibiotics business to US rival Pfizer in a deal worth £1.2bn.

The London-based company is selling to focus on its core areas including cancer and lung and heart disease.

Viagra-maker Pfizer, which failed in a £69bn bid to buy AstraZeneca two years ago, will make an initial payment of £379m and further payments as manufacturing and sales develop.

The deal gives Pfizer rights to sell drugs such as Merrem (meropenem), which treats pneumonia. On Monday Pfizer bought cancer drug company Medivation in a deal worth £10.6bn.

AstraZeneca shares fell 0.4pc, or 18p, to 5080p.