AstraZeneca has signed an agreement with Actavis to acquire its branded respiratory business in the US and Canada, for an initial consideration of around $600m.
Under the agreement, Actavis will also receive an additional $100m from AstraZeneca, as well as agreed to multiple contractual consents and approvals, including certain amendments to the ongoing collaboration agreements between both the firms.
The deal is in line with AstraZeneca’s acquisition of Almirall ‘s respiratory portfolio in 2014.
AstraZeneca US president and North America executive president Paul Hudson said: "Our agreement with Actavis builds on our acquisition of Almirall’s respiratory portfolio and brings long-term value to one of our key growth platforms.
"With the addition of Tudorza and Daliresp, we will benefit from an immediate boost to revenue in our biggest market, further strengthening our growing respiratory franchise."
Once the deal concludes, AstraZeneca will acquire the development and commercial rights of Tudorza Pressair (aclidinium bromide inhalation powder) and Daliresp (roflumilast), in the US and Canada.
Tudorza Pressair is a daily long-acting muscarinic antagonist (LAMA) for chronic obstructive pulmonary disease (COPD), while Daliresp is the only once-daily oral PDE4 inhibitor currently on the market for COPD.
Both products have reported annual sales of around $230m in 2014, according to AstraZeneca.
Approved in the EU under the brand name Duaklir Genuair, AstraZeneca will also acquire the development rights of LAS40464, the combination of a fixed-dose of aclidinium with formoterol long acting beta agonist (LAMA/LABA) in a dry powder inhaler.
Actavis president and CEO Brent Saunders said: "The decision to divest these brand respiratory products will have no impact on our commitment to investing in and developing our generic respiratory product line."
Subject to antitrust law clearance as well as other customary terms and conditions, the transaction is expected to be completed in the first quarter of this year.
Image: AstraZeneca R&D facility in Mölndal, Sweden. Photo: courtesy of Erik031.