Please ensure Javascript is enabled for purposes of website accessibility

AstraZeneca Sells Hypertension Drugs in $350 Million Deal

By Eric Volkman - Mar 2, 2020 at 3:05PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The company is divesting most of its global commercial rights to a suite of five medications.

AstraZeneca (AZN -0.18%) has closed a deal to divest itself of a set of hypertension drugs. The buyer will be fellow U.K.-headquartered pharmaceutical company Atnahs. AstraZeneca received a $350 million upfront payment for the five medications, and is eligible for up to $40 million more between now and 2022 if certain sales milestones are met; it did not specify those milestones.

The deal, originally agreed to at the end of January, transfers most of the global commercial rights to the drugs Inderal, Tenormin, Tenoretic, Zestril, and Zestoretic. The arrangement does not cover China, India, Japan, or the U.S. The India and U.S. rights were previously sold, while the company will maintain its rights to the Japanese market.

Pills spilling out on U.S. currency.

Image source: Getty Images

When first announcing the Atnahs transaction, AstraZeneca said it "supports our strategy to realize value from our portfolio of non-core mature brands, enabling further investment in new medicines."

One key element of the pharmaceutical company's current strategy is to bolster its strength in oncology medicines. Lately it has had much success with its PARP inhibitor Lynparza, which is approved to treat breast, ovarian, and pancreatic cancer, and which brought in nearly $1.2 billion in revenue in 2019. Lynparza recently received priority review status from the Food and Drug Administration for prostate cancer.

AstraZeneca said that the $350 million upfront payment will be included in the "other operating income and expense" line item in its  first-quarter 2020 profit-and-loss statement. It is currently scheduled to release this quarter's results on April 29.

AstraZeneca's shares were up nearly 3% in mid-afternoon trading on Monday. 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

AstraZeneca PLC Stock Quote
AstraZeneca PLC
AZN
$65.95 (-0.18%) $0.12

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
316%
 
S&P 500 Returns
112%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/05/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.