AstraZeneca (LON:AZN) has wrapped up a deal to divest the European rights to its heart drug Atacand, the blue-chip company has said. The sale, first announced in July, comes as the group looks to offload non-core assets and reinvest in its main therapy areas.
AstraZeneca’s share price has slipped into the red in today’s session, having given up 0.34 percent to 5,943.00p as of 10:32 BST. The stock is underperforming the broader UK market, with the benchmark FTSE 100 index having started the new month on the front foot and currently standing 0.07 percent higher at 7,515.70 points. The group’s shares have added just over a fifth to their value over the past year, as compared with about a near two-percent gain in the Footsie.
AstraZeneca wraps up Atacand deal
AstraZeneca announced in a statement today that it had completed an agreement with Cheplapharm Arzneimittel for the commercial rights to Atacand and Atacand Plus in Europe. Under the terms of the deal, the FTSE 100 group received a payment of $200 million, while a time-bound payment of $10 million as well as sales-contingent milestones will also be payable.
The Anglo-Swedish group will continue to manufacture and supply the treatments under a supply agreement and will continue to commercialise the medicines in all markets where it still holds the rights.
Analysts on Anglo-Swedish drugmaker
Goldman Sachs, which sees AstraZeneca as a ‘sell,’ set a price target of 4,080p on the shares last week, while JPMorgan Chase & Co, which rates the company as a ‘buy,’ set a valuation on the shares of 6,500p. According to MarketBeat, the blue-chip group currently has a consensus ‘buy’ rating and an average price target of 5,760.47p.