Abraxis Acquires AstraZeneca's U.S. Branded Anesthetic, Analgesic Product Lines

PharmaManufacturing.com
06/28/2006

Abraxis BioScience, Inc., an integrated, global biopharmaceutical company, announced June 28 it has completed its acquisition of the AstraZeneca U.S. branded anesthetic and analgesic injectable product portfolios. Abraxis will have agreements with most major Group Purchasing Organizations (GPOs), representing the majority of U.S. hospitals, and will assume responsibility for over 700 individual contracts for this portfolio of drugs. Products in this acquisition encompass over 100 dosage forms. They Diprivan (propofol) and Naropin (ropivacaine), as well as a comprehensive suite of local anesthetics including EMLA Cream (Eutectic Mixture of Lidocaine and Prilocaine), Xylocaine (lidocaine), Polocaine (mepivacaine), Nesacaine (chloroprocaine HCl Injection, USP), Sensorcaine (bupivacaine), and Astramorph (morphine sulfate injection, USP).

"This acquisition of these products significantly enhances our market-leading injectable drug portfolio and underscores our on-going commitment to provide a broad range of both multi-source and branded injectables to hospitals, clinics, and ultimately the patients they treat," said Patrick Soon-Shiong, M.D., chief executive officer and chairman of the board of Abraxis BioScience.

Abraxis, through its Abraxis Pharmaceutical Products division, manufactures the largest anti-infective injectable product portfolio and one of the broadest portfolios of oncology and critical care products. This product acquisition of over 100 dosage forms, combined with the over 300 dosage forms currently manufactured and marketed, together with the eight FDA approvals received this year and the 23 ANDA's currently under review by the FDA, positions Abraxis to be one of the largest manufacturers of injectable pharmaceutical products for the critically ill patient.

Under the final terms of the agreement, Abraxis has acquired these products for a total cash consideration of $334 million. Abraxis paid AstraZeneca $259 million at the close and will pay $75 million on the first anniversary of the close. AstraZeneca will exclusively supply to Abraxis these products for an initial term of five years for the U.S. market.

AstraZeneca will continue to administer the distribution of this portfolio of drugs for a limited period of time.

AstraZeneca has also granted Abraxis BioScience the right of first offer to purchase or license its branded anesthetics and analgesics portfolio outside of the U.S., should AstraZeneca decide to divest these assets. In addition, AstraZeneca has agreed that Abraxis will be its preferred partner for consideration of certain proprietary injectable products when patents on these products expire.

On July 1, Abraxis and AstraZeneca will officially launch their five-and-a-half-year U.S. co-promotion of Abraxane. This robust co-promotion will greatly increase the share of voice for the product by doubling the sales force and promotional investment. In addition, AstraZeneca will share the cost of certain clinical trials that are part of the overall clinical development program.

About Abraxis BioScience, Inc.

Abraxis BioScience, Inc. is an integrated global biopharmaceutical company dedicated to meeting the needs of critically ill patients. The company develops, manufactures and markets a broad portfolio of injectable products and leverages new technology such as its nab platform to discover and deliver breakthrough therapeutics for the treatment of cancer and other life-threatening diseases. The first FDA-approved product to use this nab platform, Abraxane, was launched in 2005 for the treatment of metastatic breast cancer. To learn more about the company, visit www.abraxisbio.com.

About AstraZeneca

AstraZeneca is a major international healthcare business engaged in the research, development, manufacture and marketing of prescription pharmaceuticals and the supply of healthcare services. It is one of the world's leading pharmaceutical companies with healthcare sales of $23.95 billion and leading positions in sales of gastrointestinal, cardiovascular, neuroscience, respiratory, oncology and infection products. In the United States, AstraZeneca is a $10.77 billion healthcare business with more than 12,000 employees. For more information about AstraZeneca, visit: www.astrazeneca-us.com.