Feb 25, 2020: AstraZeneca has decided to sublicense its global rights to Movantik (naloxegol), excluding Europe, Canada and Israel, to RedHill Biopharma (RedHill). Movantik is a peripherally acting mu-opioid receptor antagonist (PAMORA) and are indicated for the treatment of opioid-induced constipation (OIC).
Ruud Dobber, Executive Vice President, BioPharmaceuticals Business Unit, said: “This divestment supports our strategy of realizing value from our portfolio of medicines that are mature or outside of our current scope to allow reinvestment in our main therapy areas. Movantik is an important established medicine and RedHill’s divestment will ensure its continued patient availability.”
According to the agreement, AstraZeneca will continue to manufacture and supply Movantik to RedHill during a transition period. In 2015, AstraZeneca entered into a co-commercialisation conformity with Daiichi Sankyo, Inc. for Movantik in the US, which will be transferred to RedHill.
Financial considerations: RedHill will make an direct payment of $52.5m to AstraZeneca on closing and a further non-contingent payment of $15m in 2021. Incomes arising from the upfront payment, balance by a charge for derecognition of the associated intangible asset, and the future payment will be reported in AstraZeneca’s financial statements in Other Operating Income & Expense. In 2019, Movantik generated sales of $96m in the US. The divestment is expected to complete in the first quarter of 2020, subject to expected closing conditions and regulatory clearances. After completion, the agreement will not impact the Company’s financial guidance for 2020.
Movantik: Movantik is a once-daily oral PAMORA approved by the US FDA for the treatment of OIC in the adult patients with chronic non-cancer pain. Movantik was licensed from the Nektar Therapeutics in 2009. In 2016, AstraZeneca divested the rights in Europe to ProStrakan Group (now KKI) and the rights in Canada and Israel to the Knight Therapeutics.
https://www.astrazeneca.com/media-centre/press-releases/2020/astrazeneca-divests-global-rights-to-movantik-25022020.html
