Benzinga | Nov 1, 2021 04:50AM EDT

AstraZeneca to Transfer Global Rights for Eklira and Duaklir to Covis Pharma for $270M

AstraZeneca has agreed to transfer its global rights to Eklira (aclidinium bromide), known as Tudorza in the US, and Duaklir (aclidinium bromide/formoterol) to Covis Pharma Group (Covis Pharma).

Both medicines are delivered via the Genuair device and used for the treatment of patients with chronic obstructive pulmonary disease (COPD).

The agreement will ensure continued patient access to these established medicines.

Covis Pharma previously acquired the rights to the respiratory medicines Alvesco, Omnaris and Zetonna from AstraZeneca in 2018.

Financial considerations

Covis Pharma will pay AstraZeneca $270m on completion. Covis Pharma will also cover certain ongoing development costs related to the medicines. The income arising from the upfront payment will be fully offset by a charge for derecognition of the associated intangible asset and therefore no Other Operating Income will be recognised in AstraZeneca's financial statements. In 2020, Eklira and Duaklir generated AstraZeneca revenue of $143m in the countries covered by this agreement.

The transaction is expected to close in the fourth quarter of 2021, subject to customary closing conditions and regulatory clearances. The agreement will not impact the Company's financial guidance for 2021.