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AstraZeneca lost patent protection, will divests rights to Seroquel and Seroquel

Christian Fernsby ▼ | December 3, 2019
AstraZeneca has agreed to sell the commercial rights to Seroquel (quetiapine fumarate immediate release) and Seroquel XR (quetiapine fumarate extended release) in the U.S. and Canada to Cheplapharm Arzneimittel GmbH (Cheplapharm).
Pharma industry   AstraZeneca
Seroquel and Seroquel XR, used primarily to treat schizophrenia and bipolar disorder, have lost their compound patent protection in the U.S. and Canada.

Topics: AstraZeneca

AstraZeneca will continue to manufacture and supply Seroquel and Seroquel XR to Cheplapharm during a transition period.

Cheplapharm will make an upfront payment of $35m to AstraZeneca and may also make future sales-contingent payments of up to $6m.

Income arising from the upfront and future payments will be reported in AstraZeneca’s financial statements within Other Operating Income & Expense.

In 2018, Seroquel generated sales of $36m in the markets covered by this agreement, while Seroquel XR generated $79m.

The agreement does not impact the Company’s financial guidance for 2019.

As there were no closing conditions to the divestment, the agreement became effective upon signing.

Pursuant to Listing Rule 10.4.1R (notification of class 2 transactions), the gross book value of assets subject to the divestment as at 31 December 2018 was nil.

In the year to 31 December 2018, the aggregate profit before tax attributable to Seroquel and Seroquel XR in the relevant territories were $108m.

The consideration will be paid in cash and the proceeds used for general corporate purposes.