Genzyme acquires rare disease therapy in divestment by AstraZeneca

Anglo-Swedish drug major AstraZeneca (LSE: AZN) has entered a definitive agreement with Genzyme, a Sanofi subsidiary (Euronext: SAN) to divest rare disease medicine Caprelsa (vandetanib).

Genzyme will pay AstraZeneca up to $300 million, which includes an upfront payment of $165 million to acquire the global rights to sell and develop the drug, and any further development sales milestones up to $135 million.

Granted Orphan Drug designation by the Food and Drug Administration in 2005, Caprelsa is an oral kinase inhibitor currently available in 28 countries to treat aggressive and symptomatic medullary thyroid carcinoma. It had global product sales of $48 million in 2014.