Pfizer acquires anti-infection drugs from AstraZeneca
Pharmaceutical giant continues buying spree
Pharmaceutical giant Pfizer continued its buying spree in a deal to acquire rights to anti-infection drugs from United Kingdom drug giant AstraZeneca.
Pfizer said Wednesday that it would pay $550 million upfront and potentially a billion more, plus royalties, for rights to anti- infection drugs, which include antibiotics and other treatments, that have reached the late stages of clinical development. The drugs are designed to stop infections from spreading or kill them outright.
The deal comes two days after the company acquired cancer drug maker Medivation for about $14 billion. The major pharmaceutical companies are regularly hunting through growth by acquisition.
The AstraZeneca deal gives Pfizer the rights to several drugs, including Zavicefta, which has been approved by the European Union to treat certain urinary tract infections, hospital-acquired pneumonia and other conditions.
In addition to the upfront payment, Pfizer will make a deferred payment of $175 million in Janu- ary 2019 and could deliver up to $250 million in payments tied to drug development benchmarks, and up to $600 million tied to sales performance and additional royalties.
“As we continue to reshape our essential health portfolio, we are focusing on areas that further address global public health needs and that complement our core capabilities and experience in therapeutic areas, including antiinfectives,” Pfizer essential health group President John Young said in a statement.
Shares of Pfizer stock closed down 0.7% Wednesday to $34.82.
“We are focusing on areas that further address global public health needs and that complement our core capabilities and experience in therapeutic areas.” John Young, Pfizer essential health group president