AstraZeneca (LON:AZN) has completed the divestment of the rights of several respiratory treatments to Switzerland-based Covis Pharma, the blue-chip group has said. The news comes after earlier this week, the Anglo-Swedish drugmaker wrapped up the disposal of some rights to Nexium and Vimovo, to Grünenthal.
AstraZeneca’s share price has been trading in the red in London in today’s session, having given up 1.27 percent to 5,975.00p as of 14:49 GMT. The shares, however, are outperforming the broader market selloff which has seen the benchmark FTSE 100 index tumble 2.73 percent to 6,732.72 points so far today, as the arrest of a Huawei executive in Canada reignited fears over the US-China trade relations.
AstraZeneca completes another disposal
AstraZeneca announced in a statement today that it had completed an agreement with Covis Pharma to sell its rights to the medicines Alvesco, used for the treatment of persistent asthma, and Omnaris and Zetonna, which are used to treat nasal symptoms associated with rhinitis. The rights cover markets outside the US and the US royalties for the medicines. The transaction does not include the transfer of any of the FTSE 100 drugmaker’s employees or facilities to the Swiss company.
The transaction, first announced last month, is part of the blue-chip pharmco’s ongoing strategy to divest non-core assets as it looks to focus on its pipeline of new treatments to propel growth going forward.
Blue-chip group lands $350 million from deal
AstraZeneca said that it had received a payment of $350 million from Covis for the deal, and will report it in the Other Operating Income & Expense section of its financial statement for the last quarter of the year. The blue-chip pharmco said that the agreement does not affect its financial guidance for the current year.