AstraZeneca sells imaging agent rights

Anglo-Swedish drug major AstraZeneca (LSE: AZN) has out-licensed AZD4694, its late-stage radiopharmaceutical imaging candidate, to USA-based Neoprobe Corp (NYSE Amex: NEOP). AZD4694 is a Flourine-18 labeled radiotracer discovered by AstraZeneca to support development of potential treatments for Alzheimer´s disease.

Under the financial terms of the agreement, Neoprobe will make an upfront payment of $5 million to AstraZeneca and a series of contingent milestone payments including up to $6.5 million on the achievement of clinical development and regulatory filing milestones and up to additional $11 million due following the receipt of regulatory approvals and  the initiation of commercial sales. In addition, Neoprobe will pay AstraZeneca royalties on net sales of the approved product.

As part of the accord, Neoprobe will be responsible for the clinical development and commercialization of AZD4694 and expects to initiate a Phase III clinical program in early 2013. AstraZeneca retains the right to use AZD4694 in clinical trials to support development of potential treatments for Alzheimer’s disease.