AstraZeneca plc (ADR) (NYSE:AZN) has announced that it is planning to dispose the remaining rights to its anesthetics and it as already struck a deal with Aspen Global.
AstraZeneca revealed that it has already signed a deal for the sale of the remaining anesthetic drugs to Aspen Global Incorporated, a subsidiary of Aspen Group Inc (NASDAQ:ASPU). The deal that is currently on the table between the two firms for the anesthetic portfolio is $766 million but Aspen will pay an upfront of $555 million. AstraZeneca also reminded its investors that it sold commercialization rights to its anesthetic medicine outside the U.S to AGI part of a collaborative deal that the two struck in June 2016.
Aspen is expected to acquire the remaining rights as per the new deal to the intellectual property. It is also expected to acquire the manufacturing knowledge for various anesthetic drugs from AstraZeneca including Xylocaine/Xylocard/Xyloproct, Citanest, Carbocaine, Marcaine, EMLA, and Diprivan.
“This second transaction allows us to reap the additional benefits from the excellent strategic acquisition that the anesthetics portfolio has proven to be for Aspen and a key part of this will be to continue leveraging the strong working relationship that we have developed with AstraZeneca,” said Stephen Saad, the Group chief executive for Aspen.
AstraZeneca’s Executive Vice President of Global Product and Portfolio Strategy, Mark Mallon stated that both his firm and patients have benefitted from the commercial agreements struck in 2016. Mallon also pointed out that his company’s relationship with Aspen has evolved and that Aspen has demonstrated a strong capacity for maximizing the value of the medicines through its elaborate commercial network. He also stated that disposing the remaining rights would not only provide greater efficiencies for AstraZeneca but also for Aspen.
AstraZeneca is currently placing its focus on oncology, metabolic, and cardiovascular diseases as well as respiratory treatments. The company also stated that it will continue to make and supply the anesthetic drugs throughout a transition period that might take up to 5 years.
AstraZeneca stock closed the latest trading session on Thursday at $32.62 after tanking by 0.09 percent compared to the value of the stock during the previous close.