New Delhi: AstraZeneca Pharma India will stop selling anti-bacterial drug Meronem in India following a global deal by its parent AstraZeneca UK to sell its small molecule antibiotics business to Pfizer Inc.
The company has received a notice of termination from AstraZeneca UK conveying its decision for termination of distribution arrangements for Meronem in India, AstraZeneca Pharma India said in a regulatory filing.
"The current distribution arrangement for Meronem in India will terminate in six months from today," it added.
This is a result of a global agreement by AstraZeneca PLC to sell the development and commercialisation rights to Pfizer Inc of its late stage small molecule antibiotics business, it said.
Meronem is anti-bacterial used for the treatment of serious infections in hospitalised patients.
The product is currently one of the company's principal products which generated 18 per cent total turnover of the firm in fiscal ended March 31, 2016.
The global transaction between AstraZeneca Plc and Pfizer is expected to close in the fourth quarter of 2106.
AstraZeneca today announced that it has entered into an agreement with Pfizer to sell the commercialisation and development rights of its late-stage small molecule antibiotics business in most markets globally outside the US.
As part of the deal which is estimated to be over $1.5 billion, Pfizer will make an upfront payment to AstraZeneca of $550 million upon completion and a further unconditional payment of $175 million in January 2019 for the commercialisation and development rights to the late-stage antibiotics business in all markets where AstraZeneca holds the rights.
In addition, Pfizer will pay up to $250 million in commercial, manufacturing and regulatory milestones, up to $600 million in sales-related payments as well as recurring, double-digit royalties on future sales of Zavicefta and ATM-AVI in certain markets.
AstraZeneca's antibiotic medicines Merrem and Zinforo are available in more than 100 countries and generated product sales of $250 million in 2015.
Published Date: Aug 24, 2016 18:09 PM | Updated Date: Aug 24, 2016 18:09 PM