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AstraZeneca divests gastroenterology medicine, Entocort's outside US rights to Tillotts Pharma

United KingdomMonday, July 20, 2015, 14:00 Hrs  [IST]

AstraZeneca, a global, innovation-driven biopharmaceutical business, has completed its agreement with specialty pharma company, Tillotts Pharma AG (Tillotts), part of the Zeria Group, for the divestment of global rights, outside the US, to Entocort (budesonide), a gastroenterology medicine for patients with mild to moderate Crohn’s disease and ulcerative colitis.

Upon completion of the transaction, Tillotts paid AstraZeneca $215 million for the rights to sell and develop Entocort capsules and enema formulations outside the US. The transaction does not include the transfer of any AstraZeneca employees or facilities.

The agreement reinforces AstraZeneca’s strategic focus on three main therapy areas. As AstraZeneca will no longer retain an interest in the ex-US rights to Entocort, the upfront receipt will be reported in other operating income in the company’s financial statements for 2015. The transaction does not impact AstraZeneca’s financial guidance for 2015.

In capsule formulation, Entocort is a first-line therapy indicated for the induction and maintenance of clinical remission of mild to moderate active Crohn's disease involving the ileum and/or the ascending colon. As an enema, Entocort is indicated for the induction and maintenance of clinical remission of distal ulcerative colitis in the rectum, sigmoid colon and descending colon.

AstraZeneca has a partnership with Par Pharmaceutical for the commercialisation of Entocort in the US.

 
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