AstraZeneca share price: Pharmco wraps up divestment of US Synagis rights

AstraZeneca (LON:AZN) has completed the divestment of the US rights to its drug Synagis, the blue-chip company has said. The Anglo-Swedish drugmaker announced the divestment in November as it looks to offload non-core drugs and focus on a limited number of therapy areas expected to propel growth.

AstraZeneca’s share price has fallen into the red in today’s session, having given up 2.04 percent to 5,368.00p as of 14:52 GMT. The stock is underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.1 percent higher at 6,825.68 points. The pharmco’s shares have added more than eight percent to their value over the past year, as compared with about a 10.4-percent dip in the Footsie.

AstraZeneca wraps up deal

AstraZeneca announced in a statement that it had completed the agreement to sell its US rights to Synagis, used for the prevention of serious lower respiratory tract infection (LRTI) caused by respiratory syncytial virus (RSV), to Swedish Orphan Biovitrum (Sobi). Under the terms of the deal, the blue-chip pharmco has received a total consideration of $1.6bn, consisting of $1 billion in cash and $590 million in ordinary shares of Sobi, equating to an ownership interest of eight percent. AstraZeneca has committed to retaining the shares for 12 months.

The FTSE 100 group will also receive sales-related payments for Synagis and profit- and development-related milestones and non-contingent payments for MEDI8897, currently in development for the prevention of LRTI caused by RSV in all infants entering their first RSV season and children with chronic lung disease or congenital heart disease entering their first and second RSV season.

Analysts on FTSE 100 group

JPMorgan Chase & Co reaffirmed AstraZeneca as a ‘buy’ this week, while Barclays continues to see the blue-chip drugmaker as an ‘overweight’. According to MarketBeat, the blue-chip group currently has a consensus ‘buy’ rating and an average price target of 6,243.45p.

As of 15:16 GMT, Friday, 25 January, AstraZeneca plc share price is 5,368.00p.