AstraZeneca to sell rights to Alvesco, Omnaris, Zetonna to Covis Pharma
AstraZeneca has entered into an agreement with Covis Pharma B.V. to sell its rights to the medicines Alvesco, used for the treatment of persistent asthma, and Omnaris and Zetonna, used for the treatment of nasal symptoms associated with rhinitis. The rights cover markets outside the US and the US royalties for the medicines. Covis Pharma currently commercialises Alvesco, Omnaris and Zetonna in the US and will become the owner of the medicines upon closing. The transaction does not include the transfer of any AstraZeneca employees or facilities. Covis Pharma will pay AstraZeneca $350M upon closing, in addition to conditional sales-related payments of up to $21M over four years from 2019. The agreement is subject to customary closing conditions and is expected to complete by the end of 2018. As AstraZeneca will not maintain a significant ongoing interest in the medicines following completion, the payments will be recognized as Other Operating Income in the company's financial statements. Combined 2017 Product Sales of Alvesco, Omnaris and Zetonna, recorded by AstraZeneca, were $106M. The agreement does not affect the company's financial guidance for 2018.