AstraZeneca (LON:AZN) has wrapped up the divestment of some rights to Nexium and Vimovo, the blue-chip pharmco has said. The deal, announced in October, is part of the Anglo-Swedish drugmaker’s strategy to divest non-core assets and focus on a limited number of therapy areas to propel growth going forward.
AstraZeneca’s share price has climbed higher in London this morning, having gained 0.45 percent to 6,144.50p as of 08:06 GMT. The stock is underperforming the broader UK market, with the benchmark FTSE 100 index having rallied 1.93 percent to 7,115.05p, as investors cheer the trade truce between the US and China. The group’s shares have added just under 30 percent to their value over the past year, as compared with about a three-percent drop in the Footsie.
AstraZeneca wraps up deal
AstraZeneca announced in a statement this morning that it had completed an agreement to divest the prescription medicine rights to Nexium in Europe, as well as the global rights, excluding the US and Japan, to Vimovo, to Grünenthal. Under the terms of the deal, the company has received payments of $700 million for Nexium and $115 million for Vimovo. The pharmco will report the payments within the Other Income and Expenses section in its financial statements in the fourth quarter of the year.
AstraZeneca said that it will continue to commercialise Nexium in all markets outside Europe, where the company retains the rights, but that it will not retain any ownership rights to Vimovo globally.
Analysts on FTSE 100 group
HSBC, which rates AstraZeneca as a ‘sell,’ set a price target of 4,860p on the shares last week. According to MarketBeat, the blue-chip group currently has a consensus ‘hold’ rating and an average price target of 5,927.44p.