AstraZeneca Ends European Licensing Pact With Valeant
July 01 2016 - 7:40AM
Dow Jones News
LONDON—AstraZeneca PLC (AZN. LN) has terminated its European
licensing pact for skin medicine brodalumab with Canadian drugmaker
Valeant Pharmaceuticals International Inc. (VRX. T) and has instead
granted the license to Danish firm LEO Pharma A/S, in a bid to
further broaden the launch market for the experimental drug.
The British pharmaceutical giant said Friday that it had
mutually agreed to terminate the European licensing pact for
brodalumab with an affiliate of Valeant.
It added, however, that Valeant will continue to lead the
development and commercialization of the drug in the U.S. and
certain other markets as per the initial agreement entered in
September 2015.
Brodalumab, which is currently under regulatory review, is used
for treating plaque psoriasis, a skin disease that causes red
patches covered with silvery scales, and for inflammation of the
joints associated with psoriasis.
AstraZeneca doesn't expect the European termination to affect
its financial guidance for 2016.
Valeant, which is currently being probed by multiple U.S.
regulators in connection with drug pricing and dealings with
distributors, said separately that the termination will help the
company to focus on the U.S. market.
It also said AstraZeneca will pay an undisclosed upfront payment
and certain milestone-related payments as a consideration for the
termination.
"We are pleased with this new licensing arrangement for
brodalumab, which enables us to more sharply focus our efforts on
delivering this important treatment to patients in the U.S. and
other key markets, while providing us with immediate value and
significant ongoing exposure to the treatment's commercialization
in Europe," Valeant Chairman and Chief Executive Officer Joseph
Papa said.
At 10:45 a.m. in London, shares of AstraZeneca were trading 0.6%
lower at 4,443 pence ($59.14) each.
Write to Tapan Panchal at Tapan.Panchal@wsj.com
(END) Dow Jones Newswires
July 01, 2016 07:25 ET (11:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Valeant Pharma (NYSE:VRX)
Historical Stock Chart
From Aug 2024 to Sep 2024
Valeant Pharma (NYSE:VRX)
Historical Stock Chart
From Sep 2023 to Sep 2024