AstraZeneca has agreed to sublicense its global rights to Movantik (naloxegol), excluding Europe, Canada and Israel, to RedHill Biopharma. Movantik is a peripherally acting mu-opioid receptor antagonist (PAMORA) indicated for the treatment of opioid-induced constipation (OIC).
According to AstraZeneca, this divestment is meant to bolster its strategy to realize value from its medicines that are mature or outside its current scope to enable reinvestment in its main therapy areas.
As part of the agreement, AstraZeneca will continue to manufacture and supply Movantik to RedHill during a transition period. In 2015, AstraZeneca entered into a co-commercialisation agreement with Daiichi Sankyo, Inc. for Movantik in the United States, which will be transferred to RedHill.
RedHill will make an upfront payment of $52.5 million to AstraZeneca on closing and a further non-contingent payment of $15 million in 2021. In 2019, Movantik generated sales of $96 million in the U.S. The divestment is expected to complete in the first quarter of 2020, subject to customary closing conditions and regulatory clearances. Upon completion, the agreement will not impact the Company’s financial guidance for 2020.
Read the AstraZeneca release