Swedish Orphan Biovitrum AB (Sobi) has completed the acquisition of US rights of Synagis (palivizumab) from AstraZeneca in a deal valued at around $1.6bn.
The deal also provides Sobi with the right to participate in payments from the US profits or losses for new medicine MEDI8897 in development for RSV-induced LRTI
As part of the deal, around 130 employees from AstraZeneca have joined Sobi, which commercializes Synargis in the US.
Synargis was developed for the prevention of serious lower respiratory tract infection (LRTI) caused by respiratory syncytial virus (RSV).
AstraZeneca will continue to develop MEDI8897 in partnership with Sanofi’s vaccines division Sanofi Pasteur.
As per terms of the agreement, AstraZeneca has secured $1.0bn in cash and $590m in ordinary shares of Sobi, which is equal to an ownership interest of 8%. AstraZeneca intends to retain the shares for one year.
AstraZeneca is also eligible to secure sales-related payments for Synagies, as well as profit and development-related milestones and non-contingent payments for MEDI8897 from Sobi.
Synagis will help prevent serious LRTI caused by RSV in infants and young children at high risk of RSV disease.
Synagis is an RSV F protein inhibitor monoclonal antibody (mAb), which serves as a prophylaxis against serious RSV disease. It is claimed to be the only medicine secured approval to treat serious RSV disease.
AstraZeneca has entered into an agreement with AbbVie to distribute Synagis outside the US, which is said to be not impacted by the transaction with Sobi
AstraZeneca has entered into an agreement with AbbVie for the distribution of Synagis outside the US, which is not impacted by the transaction with Sobi.
MEDI8897 is a single dose extended half-life anti-RSV (F) mAb being developed to prevent LRTI caused by RSV in all infants entering their first RSV season and children with chronic lung disease or congenital heart disease entering their first and second RSV season.
The treatment is being developed for the passive immunisation of a wider range of population and engineered to provide only one dose for the complete RSV season.
In March 2015, the MEDI8897 secured fast track designation from the US Food and Drug Administration.