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AstraZeneca To Divest Atacand In 70 Countries To Cheplapharm In $400 Mln Deal

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(RTTNews) – British drug major AstraZeneca Plc. (AZN.L, AZN) Friday said it has agreed to sell the commercial rights to Atacand (candesartan cilexetil) and Atacand Plus in around 70 countries globally to Cheplapharm Arzneimittel GmbH.

In the deal, Cheplapharm will pay AstraZeneca a total of $400 million in non-contingent consideration. Of this, $250 million will be payable on completion and the remainder in the first half of 2021. The consideration will be paid in cash and the proceeds used for general corporate purposes.

AstraZeneca said the divestment will not impact its financial guidance for 2020.

Atacand is a prescription medicine approved for the treatment of heart failure or HF and hypertension. Atacand Plus, a fixed-dose combination of candesartan cilexetil and hydrochlorothiazide, is approved for the treatment of hypertension.

In 2019, Atacand and AtacandPlus generated sales of $148 million and profit before tax of $89 million in the countries covered by the agreement.

AstraZeneca said it will continue to manufacture and supply Atacand and AtacandPlus and will continue to commercialise the medicine during a three-year transition period.

Ruud Dobber, Executive Vice President, BioPharmaceuticals Business Unit, said, “This agreement forms part of our strategy to carefully manage the mature medicines, enabling reinvestment in our main therapy areas to bring innovative new medicines to patients.”

Cheplapharm previously acquired the rights to Atacand in Europe.