Italian drugmaker Recordati will pay AstraZeneca about 250,70 million pounds up front for the rights rights for Seloken and related combo Logimax , which are used to treat hypertension, angina and heart failure.  However AstraZeneca will continue retain the rights for the medicines outside Europe.

“This agreement allows us to concentrate our resources on bringing multiple new medicines to patients. Recordati’s expertise in cardiovascular disease and established European salesforce will help to expand the commercial potential of the Seloken brands, which are mature medicines for the new AstraZeneca.”

Furthermore the British company will continue to receive sales-related royalties,  at a double-digit percentage rate. AstraZenca will also continue to manufacture and ship product to Recordati under a new supply agreement.

These European sales of the medicines in 2016 were worth $110 million in 2016. AstraZeneca,

The agreement is the latest in a series of commercial rights sales with the aim to use funds  coming from such deals to help to reverse years of revenue declines caused by patent expiries on former blockbuster medicines, while waiting for new drugs, particularly for cancer, to deliver new growth.

The Italian group said acquiring the treatment for high blood pressure, angina and heart failure would allow it to expand into new markets. The acquisition will be funded by existing funds and available credit lines, it added.

Source: The Financial Times, Reuters, Euronews