AstraZeneca Sells Global Commercial Rights to Two Cardiovascular Drugs, Atacand and Atacand Plus, for $400 Million

On the morning of October 30, AstraZeneca announced that it would sell the commercial rights to two cardiovascular drugs, Atacand (candesartan cilexetil) and Atacand Plus (candesartan cilexetil and hydrochlorothiazide tablets), to Germany’s Cheplapharm Arzneimittel GmbH for $400 million. These two drugs are approved for the treatment of heart failure and hypertension, respectively, and are currently available in approximately 70 countries worldwide.

For Cheplapharm, the agreement was reached on the basis of the 2018 agreement to obtain the distribution rights for Atacand in Europe [Related reading:$200 Million! AstraZeneca Sells Legacy Cardiovascular Drug Candesartan Cilexetil], the agreement announced today will allow the company to expand the application of this cardiovascular drug to other countries worldwide.

Atacand is a selective angiotensin II type 1 (AT1) receptor antagonist indicated for the treatment of hypertension in adults and children/adolescents, as well as heart failure in adults. Atacand Plus is recommended when monotherapy with candesartan cilexetil or hydrochlorothiazide is insufficient to control hypertension.

Under the terms of the agreement, AstraZeneca will continue to manufacture and supply Atacand and Atacand Plus, and will continue to commercialize these drugs during a three-year transition period. Of the $400 million payment for these two drugs, Cheplapharm will make an upfront payment of $250 million to AstraZeneca upon closing of the transaction in the fourth quarter of this year, with the remaining $150 million to be paid in the first half of 2021. Accordingly, the revenue from the divested business will be recorded as other operating income in AstraZeneca’s 2020 financial statements and will not affect the full-year 2020 financial guidance.

According to an AstraZeneca announcement, Atacand and Atacand Plus generated $148 million in sales and $89 million in pre-tax profits across 70 countries last year.

For AstraZeneca, the sale of global commercial rights to these two drugs is part of the company’s strategic management of mature products. The cash proceeds will better supplement the company’s current funding for its core therapies, thereby delivering more innovative medicines to patients.

AstraZeneca has been intensively and strategically divesting mature drugs in recent years [Related reading: AstraZeneca Sells Two Gastric Drugs for $920 Million; German Legacy Pharmaceutical Company Takes Over]. In 2019, the two companies reached a separate agreement regarding the treatment of acid reflux. Cheplapharm acquired the commercialization rights for omeprazole and related brands containing omeprazole sold by AstraZeneca or its partners under the brand names Acimax, Antra, Mepral, Mopral, Omepral, and Zoltum. Omeprazole, a proton pump inhibitor discovered and developed by AstraZeneca, helps reduce excessive gastric acid production caused by acid reflux and ulcers.

Reference Source:

1.AstraZeneca Divests Rights to Two Cardiovascular Drugs for $400 Million

2.Atacand to be divested to Cheplapharm in more than 70 countries