AstraZeneca sells right to beta blocker to Aralez for upfront $175 million

Continuing its string of non-strategic product divestment, AstraZeneca (LSE: AZN) has entered into an agreement with a US subsidiary of Canada-based Aralez Pharmaceuticals (Nasdaq: ARLZ) for the rights to branded and authorized generic Toprol-XL (metoprolol succinate), a beta-blocker antihypertensive drug, in the USA.

Under the terms of the agreement, Aralez will pay Anglo-Swedish pharma major AstraZeneca $175 million to acquire the rights to Toprol-XL tablets in the USA, and the authorized generic medicine marketed by Par Pharmaceuticals. Aralez will also pay AstraZeneca up to $48 million in milestone and sales-related payments, as well as mid-teen percentage royalties on sales. AstraZeneca will continue to manufacture and supply Toprol-XL and the authorized generic medicine to Aralez.

Mark Mallon, executive vice president, global product and portfolio strategy at AstraZeneca, said: “This agreement allows us to focus our resources on our new launches and pipeline of innovative medicines, while working with Aralez, a partner with expertise in cardiovascular disease, to ensure continued patient access to Toprol-XL.”