AstraZeneca announced that it has entered into an agreement with TerSera Therapeutics LLC for the commercial rights to Zoladex (goserelin acetate implant) in the U.S. and Canada. Zoladex is an injectable luteinizing hormone-releasing hormone agonist, used to treat prostate cancer, breast cancer and certain benign gynecological disorders. It was first approved in the U.S. and Canada in 1989.
TerSera will pay AstraZeneca $250 million upon completion. AstraZeneca will also receive sales-related income through milestones totaling up to $70 million, as well as recurring quarterly sales-based payments at mid-teen percent of product sales. AstraZeneca will also manufacture and supply Zoladex to TerSera, providing a further source of ongoing income from Zoladex in the U.S. and Canada.
“This agreement allows us to retain a significant share of the value of Zoladex in the U.S. and Canada, while concentrating our resources on our innovative new oncology medicines,” Mark Mallon, executive vice president, global product and portfolio strategy at AstraZeneca, said. “It also ensures patients have continued access to Zoladex, with TerSera’s dedicated focus helping to expand the potential of this important medicine.”
Financial Considerations
In 2016, product sales for Zoladex were $69 million in the U.S. and Canada, and $816 million globally. AstraZeneca will continue to commercialize Zoladex in all markets outside the U.S. and Canada. The transaction is expected to complete in the first quarter of 2017, subject to customary closing conditions.
AstraZeneca will maintain a significant ongoing interest in Zoladex in the U.S. and Canada through the sustainable and ongoing income from the upfront, milestone, quarterly sales-based and supply payments received from TerSera. The $250 million upfront, $70 million milestone payments and double-digit percentage quarterly sales-based payments received from TerSera will be reported as externalization revenue in the company’s financial statements.
The agreement does not include the transfer of any AstraZeneca employees or facilities and does not impact AstraZeneca’s financial guidance for 2017.
TerSera Therapeutics LLC acquires, develops and markets specialty pharmaceutical products with a focus on select therapeutic areas. www.tersera.com.
(Source: AstraZeneca)
Filed Under: Drug Discovery
