Astrazeneca sells cholesterol drug to German firm for $320m
Astrazeneca has announced that it will sell the rights to its blockbuster cholesterol drug to German firm Gruenenthal GmbH for $320m (£240m).
The drug, which is called Crestor, used to be one of the pharma giant’s bestselling medicines, bringing in $5bn in revenue in 2015.
However, with the marketplace now crowded with alternative treatments, the FTSE blue-chip has decided to focus instead on its cancer drug portfolio.
The deal will give Gruenenthal rights to sell Crestor and associated medicines in more than 30 countries in Europe, except the UK and Spain, Astrazeneca said.
But the firm will continue to sell the drug, which at one point made up a fifth of its revenue, in international markets such as the US and Japan.
The deal is expected to close in the first quarter of 2021, Astrazeneca said, adding that Grünenthal could make additional milestone payments of up to $30m.
The FTSE 100 firm said that the divestment would not affect its financial guidance for the year. Shares were up 1.4 per cent by mid-morning.
Andrew Duncan, analyst at Killik & Co, said: “This divestment is part of AstraZeneca’s continuing strategy to position itself towards its newer, higher growth portfolio and away from older drugs that are in decline.”