AstraZeneca Announces Completion Of Divestment Of US Rights To Synagis

(RTTNews) - AstraZeneca (AZN.L, AZN) announced the company and its global biologics research and development arm, MedImmune, has completed the agreement to sell its US rights to Synagis (palivizumab), used for the prevention of serious lower respiratory tract infection caused by respiratory syncytial virus, to Swedish Orphan Biovitrum, or Sobi. AstraZeneca has received a total consideration of $1.6 billion, consisting of $1.0 billion in cash and $590 million in ordinary shares of Sobi, equating to an ownership interest of 8%. AstraZeneca has committed to retaining the shares for 12 months.

AstraZeneca will also receive sales-related payments for Synagis and profit- and development-related milestones and non-contingent payments for MEDI8897 from Sobi.

Sobi will also have the right to participate in payments from the US profits or losses for potential new medicine MEDI8897 in development for RSV-induced lower respiratory tract infection. AstraZeneca will continue to develop MEDI8897 in collaboration with Sanofi Pasteur.