Pfizer has agreed to acquire small molecule anti-infectives business from AstraZeneca in a deal valued at approximately $1.5bn.
With this deal, Pfizer will gain commercialisation and development rights to AstraZeneca's small molecule antibiotics business in most global markets outside the US.
AstraZeneca said the deal will allow it to focus on developing transformational medicines in its three main therapy areas.
The acquisition will expand Pfizer's portfolio of more than 60 anti-infective and anti-fungal medicines.
It covers the newly approved EU drug Zavicefta (ceftazidime-avibactam), the marketed agents Merrem / Meronem (meropenem) and Zinforo (ceftaroline fosamil), and the clinical development assets aztreonam-avibactam (ATM-AVI) and CXL.
Pfizer essential health group president John Young said: “As we continue to reshape our essential health portfolio, we are focusing on areas that further address global public health needs and complement our core capabilities and experience in therapeutic areas, including anti-infectives.
“The addition of AstraZeneca’s complementary small molecule anti-infectives portfolio will help expand patient access to these important medicines and enhance our global expertise and offerings in this increasingly important area of therapeutics, in addition to providing the opportunity for near-term revenue growth.”
Upon completion of the acquisition, Pfizer will make an upfront payment to AstraZeneca of $550m.
AstraZeneca will also receive another $175m in January 2019, up to $250m in milestone payments and up to $600m in sales-related payments.
Subject to customary closing conditions, including antitrust clearance in certain jurisdictions, the acquisition is expected to be completed in the fourth quarter of 2016.
Image: Pfizer world headquarters. Photo: courtesy of Norbert Nagel, Mörfelden-Walldorf, Germany.