AstraZeneca will buy Actavis' branded respiratory drug business in the U.S. and Canada for an initial $600 million, plus an additional $100 million.
The deal is expected to complete by the end of March.
Respiratory is a key therapeutic area for AstraZeneca; the drugmaker has predicted a 75 percent jump in annual sales to $45 billion by 2023.
Last July, AstraZeneca acquired the rights to a portfolio of inhaled drugs from Barcelona-based Almirall for $875 million up front, in a deal worth up to $2.1 billion total, building its respiratory drug portfolio.
Read the Reuters press release