UK-based specialty biopharmaceutical company Circassia Pharmaceuticals has reached an agreement for the transformational acquisition of US commercial rights to two chronic obstructive pulmonary disease (COPD) products from AstraZeneca for a maximum total consideration of $230m.
Under the agreement, Circassia Pharmaceuticals will gain US commercial rights for Tudorza and Duaklir COPD products.
AstraZeneca global product and portfolio strategy executive vice-president Mark Mallon said: “Tudorza and Duaklir are important components of AstraZeneca’s respiratory franchise globally and this collaboration will support their commercialisation in the US for the benefit of the millions of COPD patients.”
The deal value includes future sales based royalties upon the commercialisation of Duaklir in the US, following potential approval.
AstraZeneca will receive a minority equity stake in Circassia and will complete ongoing development activities and continue to manufacture and supply both medicines.
Tudorza is approved in the US along with nearly 60 other countries worldwide, and the total revenues collected by AstraZeneca related to worldwide sales of the product were $170m last year, $80m of which was in the US.
Duaklir is being developed for the treatment of COPD and is presently in the Phase III development in the US. In 2014, the treatment was initially approved in the European Union (EU) and is currently approved in nearly 50 countries worldwide.
Circassia chief executive Steve Harris said: “This proposed transaction is an ideal fit with Circassia’s strategy and respiratory focus.
“It represents a transformational opportunity for the company, doubling the number of marketed products in our portfolio, with the potential to triple the current number within two years.”
With the acquisition, Circassia Pharmaceuticals will be able to expand its commercial infrastructure in the country, thereby supporting the company for future product acquisition and in-licensing opportunities.