Luye will have the rights to Seroquel and Seroquel XR in the UK, China, and other international markets such as Brazil, Australia, Saudi Arabia, Mexico, South Korea, Thailand, Argentina, Malaysia and South Africa.
AstraZeneca will receive $260m of the total consideration from Luye once the transaction closes.
Milestone payments will also be made to Luye based on certain activities.
The deal, which is scheduled to be completed by the end of second quarter of this year, is subject to customary closing conditions and regulatory clearances.
After completion, AstraZeneca will continue to produce and supply Seroquel and Seroquel XR to Luye during a transition period.
The transaction will enable AstraZeneca to focus on its three main therapy areas: oncology, cardiovascular, renal and metabolism, and respiratory.
AstraZeneca global product and portfolio strategy executive vice-president Mark Mallon said: “The agreement with Luye Pharma is in line with AstraZeneca’s strategy to focus on three main therapy areas while maximising the value from our legacy medicines like Seroquel.
“The agreement with Luye Pharma will also ensure continued widespread patient access to important established medicines.”
AstraZeneca has lost the compound patent protection for Seroquel’s formulation across the globe and also Seroquel XR’s formulation patents in the vast majority of markets.
Due to previous agreements, AstraZeneca currently holds the rights to Seroquel and Seroquel XR in Japan and Venezuela.