AstraZeneca Enters Agreement With Grunenthal To Divest Rights To Zomig

AstraZeneca (AZN) announced that it has entered an agreement with Grunenthal for the global rights to Zomig outside Japan. Zomig is indicated for the acute treatment of migraines and cluster headaches, an area of medicine outside AstraZeneca's strategic focus. Grunenthal will pay AstraZeneca $200M upon completion. AstraZeneca will also receive up to an additional $102M in future milestone payments.

Grunenthal will acquire the rights to Zomig in all markets outside Japan, including the US, where the rights were previously licensed to Impax Pharmaceuticals (IPXL). Impax will continue to market Zomig in the US. AstraZeneca will continue to manufacture and supply the medicine to Grunenthal during a transition period. In 2016, revenues from Zomig outside Japan were $96M, including Product Sales and Externalisation Revenue.

The transaction is expected to complete in the second quarter of 2017, subject to customary closing conditions and regulatory clearances. The net consideration from the agreement will be reported as Other Operating Income in the company's financial statements. The agreement does not impact the company's financial guidance for 2017.

Disclosure: None. 


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