AstraZeneca expands anti-infectives portfolio with up to $505 million buy of France's Novexel and makes deal with Forest; MedImmune recall, motavizu

Anglo-Swedish drug major AstraZeneca revealed yesterday afternoon that it is to acquire Novexel, a French speciality pharmaceutical company focused on the discovery and development of novel antibiotics designed to overcome the significant global problem of microbial drug resistance, which was spun out of what became Sanofi-Aventis in 2004. It will also collaborate with Forest Laboratories on the future co-development and commercialization of two late-stage antibiotic development programs.

Under the agreed deal, AstraZeneca will pay a total cash consideration of up to $505 million, including contingent payments and the net cash position of the company at closing. The transaction is expected to close in the first quarter of 2010, subject to certain customary conditions.

Specifically, AstraZeneca will acquire 100% of Novexel's shares for $350 million in cash payable upon completion and up to an additional $75 million to the French firm's shareholders if specified development milestones are reached. AstraZeneca will also transfer to Novexel shareholders an amount equivalent to the cash balance of Novexel at closing, which is expected to be around $80 million. This transaction will provide AstraZeneca with an attractive portfolio of clinical and preclinical compounds which are designed to address infections caused by drug-resistant bacteria in the hospital, the London-headquartered company said.