AstraZeneca to sell anti-psychotic medicine rights in Europe and Russia for $239m

Under the deal, Cheplapharm can acquire the industrial rights of Seroquel (quetiapine fumarate immediate release) and Seroquel XR (quetiapine fumarate extended-release).

The compound patent protection for Seroquel and Seroquel XR has been lost in Europe and Russia.

Seroquel and Seroquel XR square measure atypical anti-psychotic medicines with medicinal properties. Seroquel and Seroquel XR were developed to treat psychosis and major affective disorder.

Seroquel XR was conjointly approved in some markets to treat major depression and generalized mental disorder.

During a transition amount, AstraZeneca can still manufacture and distribute Seroquel and Seroquel XR to Cheplapharm.

As per terms of the agreement, AstraZeneca can receive associate direct payment of $178m from Cheplapharm, moreover as future sales-contingent payments of up to $61m.

According to AstraZeneca, the financial gain generated from the direct and future payments are rumored within the company’s monetary statements at intervals alternative in operation financial gain and expense.

In 2018, Seroquel generated annual product sales of $47m within the markets lined under the deal, whereas Seroquel XR generated $61m.

Subject to customary closing conditions and regulative clearances, the deal is predicted to be completed within the fourth quarter of this year.

AstraZeneca biopharmaceuticals government VP Ruud Dobber said: “Seroquel is a vital established medication and this agreement with Cheplapharm can facilitate guarantee continued patient access.

“It forms a part of our strategy of reducing the portfolio of mature medicines to modify reinvestment in our main medical care areas.”

Earlier, AstraZeneca conjointly divested the rights of Seroquel and Seroquel XR within the GB, Japan, and alternative major international markets.

AstraZeneca has antecedently disposed of the rights to Seroquel and Seroquel XR within the GB, Japan, and alternative major international markets.