AstraZeneca to divest part of antibiotics business in up to $1.5 billion deal

Anglo-Swedish pharma major AstraZeneca (LSE: AZN) has entered into an agreement with US giant Pfizer (NYSE: PFE) to sell the commercialization and development rights to its late-stage small molecule antibiotics business in most markets globally outside the USA.

The deal follows Monday’s news that Pfizer has also agreed a $14 billion transaction to acquire US biotech firm Medivation to expand its oncology business, and follows several asset sales by AstraZeneca, whose shares were barely moved by the latest news.

The agreement reinforces AstraZeneca’s focus on developing transformational medicines in its three main therapy areas, while realizing value from the strong portfolio of established and late-stage small molecule antibiotics through Pfizer’s dedicated commercialisation and development capabilities in anti-infectives. The portfolio comprises the approved antibiotics Merrem(meropenem) and Zinforo (ceftaroline fosamil), which are available in more than 100 countries and generated sales of $250 million in 2015, and Zavicefta(ceftazidime-avibactam), as well as ATM-AVI and CXL, which are in clinical development.