FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of October 2019
Commission File Number: 001-11960
AstraZeneca PLC
1 Francis Crick Avenue
Cambridge Biomedical Campus
Cambridge CB2 0AA
United Kingdom
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
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AstraZeneca PLC
INDEX TO EXHIBITS
AstraZeneca divests rights to Seroquel and Seroquel XR in Europe and Russia
30 October 2019 07:00 GMT
AstraZeneca divests rights to Seroquel and Seroquel XR in Europe and Russia
Sale to Cheplapharm supports AstraZeneca's focus on main therapy areas
AstraZeneca has agreed the sale and licence of the commercial rights to Seroquel (quetiapine fumarate immediate release) and Seroquel XR (quetiapine fumarate extended release) in Europe and Russia to Cheplapharm Arzneimittel GmbH (Cheplapharm). Seroquel and Seroquel XR, used primarily to treat schizophrenia and bipolar disorder, have lost their compound patent protection in Europe and Russia.
Ruud Dobber, Executive Vice President, Biopharmaceuticals, said: "Seroquel is an important established medicine and this agreement with Cheplapharm will help ensure continued patient access. It forms part of our strategy of reducing the portfolio of mature medicines to enable reinvestment in our main therapy areas."
AstraZeneca will continue to manufacture and supply Seroquel and Seroquel XR to Cheplapharm during a transition period.
Pursuant to Listing Rule 10.4.1R (notification of class 2 transactions), the gross book value of assets subject to the divestment as at 31 December 2018 was nil. In the year to 31 December 2018, the aggregate pre-tax profits attributable to Seroquel and Seroquel XR in the relevant territories were $86m. The consideration will be paid in cash and the proceeds used for general corporate purposes.
Financial considerations
Cheplapharm will make an upfront payment of $178m to AstraZeneca and may also make future sales-contingent payments of up to $61m. Income arising from the upfront and future payments will be reported in AstraZeneca's financial statements within Other Operating Income & Expense. In 2018, Seroquel generated annual product sales of $47m in the markets covered by this agreement, while Seroquel XR generated $61m. The agreement does not impact the Company's financial guidance for 2019. The transaction is expected to complete in the fourth quarter of 2019, subject to customary closing conditions and regulatory clearances.
About Seroquel
Seroquel and Seroquel XR are atypical anti-psychotic medicines with antidepressant properties. The main indications for Seroquel are the treatment of schizophrenia and bipolar disorder. Seroquel XR is also approved in some markets for major depressive disorder and generalised anxiety disorder.
AstraZeneca has previously disposed of the rights to Seroquel and Seroquel XR in the UK, Japan and other major international markets.
About AstraZeneca
AstraZeneca is a global, science-led biopharmaceutical company that focuses on the discovery, development and commercialisation of prescription medicines, primarily for the treatment of diseases in three therapy areas - Oncology, Cardiovascular, Renal and Metabolism, and Respiratory. AstraZeneca operates in over 100 countries and its innovative medicines are used by millions of patients worldwide. Please visit astrazeneca.com and follow the Company on Twitter @AstraZeneca.
| Media Relations | ||
| Gonzalo Viña | +44 203 749 5916 | |
| Rob Skelding | Oncology | +44 203 749 5821 |
| Rebecca Einhorn | Oncology | +1 301 518 4122 |
| Matt Kent | BioPharmaceuticals | +44 203 749 5906 |
| Jennifer Hursit | Other | +44 203 749 5762 |
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| Michele Meixell | US | +1 302 885 2677 |
| Investor Relations | ||
| Thomas Kudsk Larsen | +44 203 749 5712 | |
| Henry Wheeler | Oncology | +44 203 749 5797 |
| Christer Gruvris | BioPharmaceuticals (CV, Metabolism) | +44 203 749 5711 |
| Nick Stone | BioPharmaceuticals (Renal), ESG | +44 203 749 5716 |
| Josie Afolabi | BioPharmaceuticals (Respiratory), other medicines | +44 203 749 5631 |
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| US toll-free | +1 866 381 72 77 |
Adrian Kemp
Company Secretary
AstraZeneca PLC
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| AstraZeneca PLC |
Date: 30 October 2019
| By: /s/ Adrian Kemp | |
| Name: Adrian Kemp | |
| Title: Company Secretary |