AstraZeneca to pay $600Mln for Respiratory Drugs

AstraZeneca PLC has agreed to pay $600 million for Actavis PLC's U.S. and Canadian respiratory drug portfolio.

The transaction will grant AstraZeneca the development and commercial rights to Actavis' Tudorza Pressair and Daliresp, two chronic obstructive pulmonary disease medicines. The products generated combined annual sales of roughly $230 million in the U.S. last year, according to the company's announcement.

AstraZeneca will also own the U.S. development rights for a chronic pulmonary obstructive disease drug that has already been approved in Europe under the brand name Duaklir Genuair.

Actavis will receive an additional $100 million for a number of contractual consents and approvals, including certain amendments to the ongoing collaboration agreements between the two drug makers.

Both companies expect the transaction to be completed in the first quarter of this year

"Our agreement with Actavis builds on our acquisition of Almirall's respiratory portfolio and brings long-term value to one of our key growth platforms. With the addition of Tudorza and Daliresp, we will benefit from an immediate boost to revenue in our biggest market, further strengthening our growing respiratory franchise," said Paul Hudson, President of AstraZeneca US and Executive Vice President North America.