REG - AstraZeneca PLC - STRATEGIC RESPIRATORY TRANSACTION WITH ALMIRALL <Origin Href="QuoteRef">AZN.L</Origin>

AstraZenecaAnnouncement

06/09/2014 22:35

For best results when printing this announcement, please click on the link
below:

http://pdf.reuters.com/Regnews/regnews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20140730:nRSd6975Na


RNS Number : 6975N
AstraZeneca PLC
30 July 2014 
 
ASTRAZENECA AGREES STRATEGIC TRANSACTION WITH ALMIRALL IN RESPIRATORY DISEASE 
 
Business combination will provide boost to revenue as well as creating
long-term value, strengthening AstraZeneca's respiratory franchise with a
complementary pipeline and inhaled device capabilities in asthma and COPD 
 
AstraZeneca today announced that it has entered an agreement to transfer to
the company the rights to Almirall's respiratory franchise for an initial
consideration of $875 million on completion, and up to $1.22 billion in
development, launch, and sales-related milestones. AstraZeneca has also agreed
to make various sales-related payments. 
 
Upon completion of the transaction, AstraZeneca will own the rights for the
development and commercialisation of Almirall's existing proprietary
respiratory business, including rights to revenues from Almirall's existing
partnerships, as well as its pipeline of investigational novel therapies.  The
franchise includes Eklira® (aclidinium); LAS40464, the combination of
aclidinium with formoterol which has been filed for registration in the EU and
is being developed in the US; LAS100977 (abediterol), a once-daily long-acting
beta2-agonist (LABA) in Phase II; an M3 antagonist beta2-agonist (MABA)
platform in pre-clinical development (LAS191351, LAS194871) and Phase I
(LAS190792); and multiple pre-clinical programmes. Under the agreement,
Almirall Sofotec, an Almirall subsidiary focused on the development of
innovative proprietary devices, will also transfer to AstraZeneca. 
 
The business combination will give AstraZeneca immediate access to on-market
revenues, contributing to the company's return to growth. The company expects
the transaction to be neutral to Core EPS in 2015 and accretive from 2016.
AstraZeneca intends to finance the transaction from existing cash resources
and short-term credit facilities. Based on the anticipated timing of
completion, the transaction will have no impact on AstraZeneca's guidance for
2014. 
 
Almirall's pipeline of novel respiratory assets and its device capabilities
further strengthen AstraZeneca's respiratory portfolio, which includes
Symbicort® and Pulmicort®, as well as the company's investigational medicines
in development. The addition of aclidinium and the combination of aclidinium
with formoterol, both in proprietary Genuair® device, will allow AstraZeneca
to offer patients a choice between dry powder inhaler and metered dose inhaler
devices across a range of molecules and combinations. 
 
AstraZeneca and Almirall anticipate that, subject to local consultation and
legislation, a significant number of employees dedicated to the respiratory
business, including Almirall Sofotec employees, will transfer to AstraZeneca. 
 
Pascal Soriot, Chief Executive Officer of AstraZeneca said: "Our agreement
with Almirall brings strategic and long-term value to AstraZeneca's strong
respiratory franchise, one of our key growth platforms. We will benefit from
immediate and growing product revenues which we anticipate will be rapidly
accretive to earnings. Chronic respiratory disease affects hundreds of
millions of people around the world. By combining our innovative portfolios
and leveraging AstraZeneca's global scientific and commercial capabilities, we
will strengthen our ability to address the entire spectrum of care in asthma
and COPD. I very much look forward to welcoming the Almirall people to our
company." 
 
Jorge Gallardo, President of Almirall said: "This important agreement allows
us to better develop our assets and expertise in respiratory with AstraZeneca,
an experienced player in this therapeutic area. It also allows us to better
balance the costs, risks and returns of the respiratory business while
retaining an important economic interest in its future success.  All this
constitutes a very solid baseline to move more aggressively in specialty areas
and particularly towards becoming a global dermatology player. R&D will remain
a key part of Almirall's business going forward and hopefully a significant
long-term growth driver." 
 
The transaction is subject to certain competition law clearances as well as
other customary terms and conditions. The companies anticipate the transaction
will complete by the end of 2014. 
 
An overview presentation about the transaction will be available at:
www.astrazeneca.com/Investors. 
 
NOTES TO EDITORS 
 
About COPD 
 
COPD (chronic obstructive pulmonary disease) is a progressive disease
associated mainly with tobacco smoking, air pollution or occupational
exposure, which can cause obstruction of airflow in the lungs resulting in
debilitating bouts of breathlessness. It affects an estimated 210 million
people worldwide and is predicted to be the third leading cause of death by
2020. Although COPD is widely regarded as a disease of the elderly, 50 per
cent of patients are estimated to be between 50 and 65 years of age, meaning
half of the COPD population is likely to be affected at a stage in their life
when they are at the peak of their earning potential and are likely to have
major family responsibilities. 
 
About Asthma 
 
Asthma is a chronic inflammatory disorder of the airways in which the bronchi
are reversibly narrowed. It affects people of all ages and is a significant
source of morbidity and mortality worldwide. Asthma can be allergic (induced
by an immune response to inhaled allergens such as pollen, fungal spores or
dust mite particles) or non-allergic (induced by exercise, cough, viral
respiratory infection, or inhalation of smoke or chemicals in the workplace).
The airway narrowing characteristic of asthma is a response of the immune
system to the asthma trigger. 
 
Severe persistent asthma is classified by the frequency of symptoms throughout
the day and night, use of reliever inhalers, interference with daily
activities, peak flow readings and whether asthma exacerbations require use of
inhaled corticosteroids (ICS) more than twice a year. Asthma treatment usually
includes ICS that reduce inflammation of the airways to prevent asthma
symptoms and exacerbations, combined with long-acting β2-agonist
bronchodilators and a short-acting β2-agonist or other bronchodilator for
relief. 
 
About Almirall 
 
Almirall is a global company based in Barcelona dedicated to providing
valuable medicines through its R&D, agreements and alliances. Our work covers
the whole of the drug value chain. A consolidated profitable growth allows us
to devote our talent and efforts in the respiratory and dermatology areas,
with a focused interest in gastroenterology and pain. Our size enables us to
be agile and flexible so that we can accomplish the purpose of taking our
innovative products wherever they are needed. 
 
Founded in 1943, Almirall is listed on the Spanish Stock Exchange (ticker:
ALM) and it has become a source of value creation for society due to its
vision and the commitment of its long-standing major shareholders. In 2013,
its revenues totalled E825 million and, with more than 3,000 employees, it has
gradually built up a trusted presence across Europe, as well as in the US,
Canada and Mexico. For more information please visit www.almirall.com 
 
About AstraZeneca 
 
AstraZeneca is a global, innovation-driven biopharmaceutical business that
focuses on the discovery, development and commercialisation of prescription
medicines, primarily for the treatment of cardiovascular, metabolic,
respiratory, inflammation, autoimmune, oncology, infection and neuroscience
diseases. AstraZeneca operates in over 100 countries and its innovative
medicines are used by millions of patients worldwide. For more information
please visit: www.astrazeneca.com 
 
CONTACTS 
 
Media Enquiries 
 
Esra Erkal-Paler             +44 20 7604 8030 (UK/Global) 
 
Vanessa Rhodes            +44 20 7604 8037 (UK/Global) 
 
Ayesha Bharmal             +44 20 7604 8034 (UK/Global) 
 
Jacob Lund                     +46 8 553 260 20 (Sweden) 
 
Michele Meixell               + 1 302 885 2677 (US) 
 
Investor Enquiries 
 
Karl Hård                         +44 20 7604 8123      mob: +44 7789 654364 
 
Colleen Proctor               + 1 302 886 1842          mob: +1 302 357 4882 
 
Anthony Brown                +44 20 7604 8067         mob: +44 7585 404943 
 
Jens Lindberg                  +44 20 7604 8414         mob: +44 7557 319729 
 
Eugenia Litz                   +44 207 604 8233        mob: +44 788 473 5627 
 
30 July 2014 
 
-ENDS- 
 
This information is provided by RNS
The company news service from the London Stock Exchange