AstraZeneca Sells Infant Drug Rights for $1.5B

Swedish Orphan Biovitrum AB (Sobi), has entered into a deal to acquire the rights to AstraZeneca’s Synagis (palivizumab) in the U.S. for $1.5 billion upfront, which includes $1 billion in cash and $500 million in Sobi shares. In addition, deferred and contingent payments depending on certain conditions may be payable. Also as part of the deal, Sobi will lay claim to 50 percent of the future earnings of the candidate drug MEDI8897 in the U.S.
 
The deal diversifies Sobi’s revenue base in specialty care, immunology; Synagis, is the only approved respiratory syncytial virus (RSV) prophylaxis for high-risk infants, and complements Sobi’s expertise in paediatrics and immunology. 
 
The deal also accelerates Sobi’s build-up of its U.S. commercial platform; the acquisition of Synagis is expected to more than double both the revenue and size of Sobi’s U.S. organization, enhancing the financial contribution of the U.S. to Sobi’s overall revenues to approximately one-third. 
 
"I am excited about adding Synagis to our portfolio as it remains the only product preventing RSV infection in this vulnerable patient group with a great medical need," said Guido Oelkers, president and chief executive officer, Sobi. "The addition of Synagis will become an important strategic catalyst for Sobi’s future development and will form a powerful platform for growth in rare diseases. We see the acquisition as a stepping stone to drive sustainable growth in the U.S. and make Sobi more attractive for partnering. It also increases the overall specialty care franchise and diversifies our portfolio in immunology. The expected earnings of this acquisition will increase the financial flexibility to support further growth initiatives."
 
AstraZeneca’s chief executive officer, Pascal Soriot, said, "Sobi’s focus on Synagis will enable infants in the U.S. to continue benefiting from this important treatment. Meanwhile, the successful development and commercialization of MEDI8897 remains important for AstraZeneca."

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