LONDON (ShareCast) - AstraZeneca (LSE: AZN.L - news) has done a deal to buy French private infection research company Novexel for as much as $505m (£316m).
The Anglo-Swedish drug giant will pay an initial $350m (£219m) in cash plus an extra $75m (£47m) if certain milestones are achieved. Another $80m (£50m), equivalent to the French group's cash, is due on completion.
It will also collaborate with Forest Laboratories on the future co-development and commercialization of two late-stage antibiotic development programmes.
Ceftazidime/NXL-104 (CAZ104) and ceftaroline/NXL-104 (CEF104) utilise Novexel's investigational beta-lactamase inhibitor NXL-104 to overcome antibiotic-resistance and treat an increasing number of infections resistant to existing therapies.
Under a separate agreement, Astra and Forest have agreed that once the deal is complete, Forest will pay Novexel, then part of Astra, half the acquisition costs of Novexel and half the development milestone payments in return for rights to CAZ104 in North America and the buy down of payment obligations in relation to CEF104 to Novexel from previous existing license arrangements.
'Building AstraZeneca's anti-infective portfolio has become a strategic priority as antibiotic-resistant bacteria poses a growing threat to human health,' said Anders Ekblom, Astra's executive vice-president of development.
'The innovative structure of this agreement allows us to build on our existing collaboration with Forest to create value, share costs, and reduce exposure to risk while developing two novel antibiotic combinations that address a growing problem for clinicians and patients.'
'Utilising Novexel's NXL-104, these combinations have the potential to outwit bacteria that would otherwise be resistant to antibiotics,' added. |
