Astra-Zeneca in £1.2bn deal

ASTRAZENECA has agreed a deal of up to $1.58billion (£1.2billion) to sell part of its antibiotics business to Pfizer, two years after seeing off a £69billion takeover bid from the US drugs giant.

The FTSE 100 group is offloading three approved antibiotics and two drugs in clinical trials, which Viagra maker Pfizer will have the right to sell in most markets outside the US.

It will boost Pfizer’s portfolio of older products, some of which have lost patent protection, while enabling AstraZeneca to focus on developing medicines in its three main therapy areas – respiratory and autoimmunity, cardiovascular and metabolic diseases, and oncology.

Pfizer will pay $550milion up front and a further unconditional $175million in January 2019. It will also pay up to $250million when certain milestones are reached, and up to $600million in sales-related payments plus royalties.

The deal does not include AstraZeneca’s biological anti-infective treatments or its stake in the novel antibacterials Entasis Therapeutics business it spun out last year.

AstraZeneca’s head of antibiotics Luke Miels said: “This reinforces our strategic focus to invest in our three main therapy areas where we can make the greatest difference to patients’ lives. We’re pleased our strong science in antibiotics will continue to serve a critical public health need, ensuring these medicines reach greater numbers of patients.”

The deal follows Pfizer’s recommended $14billion acquisition of Californian prostate cancer medicine maker Medivation announced earlier this week, which came hot on the heels of a $5.2billion takeover of US eczema treatment firm Anacor.

Pfizer’s essential health president John Young said: “The addition of AstraZeneca’s portfolio will help expand patient access to our 60-plus anti-infective and anti-fungal medicines and enhance our global expertise and offerings in this increasingly important area of therapeutics.”