AstraZeneca Sells Seroquel Rights to Luye Pharma
AstraZeneca has sold the rights to its antipsychotic medicines Seroquel and Seroquel XR in the UK, China, and other international markets to Luye Pharma Group. The deal aligns with AstraZeneca's strategy to focus on core therapy areas.
AstraZeneca announced an agreement with Luye Pharma Group to sell and license the rights to its antipsychotic medicines Seroquel and Seroquel XR in the UK, China, and several other international markets, including Australia, Mexico, and South Korea.
The transaction is part of AstraZeneca's ongoing strategy to concentrate on its three main therapy areas: Oncology, Cardiovascular, Renal & Metabolism, and Respiratory. Seroquel, primarily used for schizophrenia and bipolar disorder, has seen its compound patent expire globally, and patent protection for the extended-release formulation Seroquel XR has also lapsed in most regions.
Under the terms of the agreement, Luye Pharma will pay $538 million, including an upfront payment of $260 million upon closing. The deal is expected to be finalized by the end of the second quarter of 2018, subject to regulatory approvals. In 2017, Seroquel and Seroquel XR generated combined sales of $148 million in the markets covered by this agreement.
AstraZeneca will continue to manufacture and supply the medicines to Luye Pharma during a transition period. The company stated that this transaction will not impact its financial guidance for fiscal year 2018.