Markets covered in the agreement include the UK, China and other international markets, such as Brazil, Australia, Saudi Arabia, Mexico, South Korea, Thailand, Argentina, Malaysia, and South Africa. Last year, Seroquel generated annual sales of $85m in these markets and Seroquel XR generated $63m.
According to the AstraZeneca, Seroquel has lost its compound patent protection globally and Seroquel XR formulation patents have expired in the majority of markets.
Under the agreement, Luye Pharma will pay $538m in consideration, including $260m following the transactions close, which is expected later this year.
Luye is also eligible for a milestone payment upon the successful transition of certain activities.
AstraZeneca, executive vice president, global product and portfolio strategy, Mark Mallon, said: “The agreement with Luye Pharma is in line with AstraZeneca’s strategy to focus on three main therapy areas.”
These areas include oncology, cardiovascular, renal and metabolism and respiratory.
AstraZeneca, in collaboration with Merck & Co. (known as MSD outside the US and Canada) today announced that the European Medicines Agency (EMA) has approved Lynparza (olaparib) tablets for ovarian cancer.
According to the company, the new formulation reduces dosing to two tablets twice daily.