Under the deal, AstraZeneca will manage the development and marketing of the antisense therapy globally.
AstraZeneca and Ionis Pharmaceuticals have closed a previously announced commercialisation agreement to develop and market experimental therapy, eplontersen, previously called IONIS-TTR-LRX.
The deal was announced earlier this month.
Eplontersen is a ligand-conjugated antisense treatment that can potentially reduce the transthyretin (TTR protein) production. It is designed to lower the progression of TTR amyloidosis’ (ATTR) hereditary and non-hereditary forms.
ATTR is a systemic, progressive and fatal disease.
Under the agreement, the two parties will co-develop and co- commercialise eplontersen in the US, while AstraZeneca will handle the development and marketing activities globally, barring Latin America.
As per the deal terms, Ionis is entitled to receive $200m in upfront payments and up to $485m as other conditional payments from AstraZeneca on receiving regulatory approvals.
Furthermore, Ionis is eligible to get nearly $2.9bn as sales-based milestone payments and low double-digit to mid-twenties percentage royalty payments based on the territory.
In a press statement, AstraZeneca stated: “The transaction will be funded with cash and is expected to be neutral to Core earnings in 2021.
“It will be accounted for as an intangible asset acquisition, recognised initially at the upfront amount, with any potential future milestone payments capitalised into the intangible asset as they are recognised.”
AstraZeneca noted that Ionis will continue to produce and market eplontersen for clinical trials that are currently underway, and for process qualifications.
The company will manage the commercial distribution of the antisense therapy with changeover timing as decided by the two companies. It will also oversee the product sales.