Astellas Transfers MYCAMINE® Product Worldwide

Rhea-AI Summary

Astellas Pharma Inc. has entered an Asset Purchase Agreement with Sandoz AG to transfer worldwide rights for the antifungal agent MYCAMINE® (micafungin sodium). The agreement, signed on Jan. 23, 2023, aims to optimize Astellas' resource allocation for sustainable growth. The financial terms include an upfront payment ranging from US$ 62.5 million to 75 million and potential milestone payments based on sales. The transaction is expected to close in the first half of 2023, with MYCAMINE® generating sales of JPY 18.9 billion for the fiscal year ending March 31, 2022. Astellas will review the financial impacts of this transaction for the fiscal year ending March 31, 2023.

Positive

• Asset Purchase Agreement with Sandoz allows Astellas to optimize resource allocation.
• The deal generates an upfront payment of US$ 62.5 million to 75 million.
• Potential for sales-based milestone payments adds future revenue streams.

Negative

• Transfer of MYCAMINE® may lead to loss of direct control over the product's future revenue.

TOKYO, Jan. 23, 2023 /PRNewswire/ -- Astellas Pharma Inc. (TSE: 4503, President and CEO: Kenji Yasukawa, Ph.D., "Astellas") today announced that Astellas and Sandoz AG ("Sandoz") have entered into an Asset Purchase Agreement, under which Astellas will transfer the world wide product rights for antifungal agent MYCAMINE^® (micafungin sodium/product name in Japan: FUNGUARD^®).

Once the transaction closes, Sandoz will acquire the rights to sell the product globally. Astellas will work closely with Sandoz to enable a smooth transition.

1. Purpose of Asset Purchase Agreement
   
   The agreement is a part of Astellas' ongoing efforts to optimize the allocation of management resources to accommodate the rapidly changing business environment and achieve sustainable growth.
   
   
2. Financial Terms of Asset Purchase Agreement
   
   US$ 62.5 - 75 million upfront, depending on the date of the closing of the transaction, and potential sales-based milestone payments. The financial terms of asset purchase agreement will be recorded as a gain on divestiture of intangible assets.
   
   
3. Schedule of Asset Purchase Agreement
   
   January 23, 2023: Signing of the Asset Purchase Agreement
   First half of 2023: Closing of the transaction(tentative)
   After closing of the transaction, the product rights for MYCAMINE^® will be transferred in each country.
   
   
4. Product
   
   MYCAMINE^® 
   (Generic Name: micafungin sodium/product name in Japan: FUNGUARD^®)
   
   
5. Sales of the product
   
   JPY 18.9 billion (fiscal year ended March 31, 2022)

Astellas is reviewing potential financial impacts of this product transaction for the fiscal year ending March 31, 2023.

About Astellas

Astellas Pharma Inc. is a pharmaceutical company conducting business in more than 70 countries around the world. We are promoting the Focus Area Approach that is designed to identify opportunities for the continuous creation of new drugs to address diseases with high unmet medical needs by focusing on Biology and Modality. Furthermore, we are also looking beyond our foundational Rx focus to create Rx+^® healthcare solutions that combine our expertise and knowledge with cutting-edge technology in different fields of external partners. Through these efforts, Astellas stands on the forefront of healthcare change to turn innovative science into VALUE for patients. For more information, please visit our website at https://www.astellas.com/en.

About Sandoz

Sandoz AG, a Novartis division, is a global leader in generic pharmaceuticals and biosimilars. Our purpose is to pioneer access for patients by developing and commercializing novel, affordable approaches that address unmet medical needs. Our ambition is to be the world's leading and most valued generics company. Our broad portfolio of high-quality medicines, covering major therapeutic areas, accounted for 2021 sales of USD 9.6 billion.

Cautionary Notes

In this press release, statements made with respect to current plans, estimates, strategies and beliefs and other statements that are not historical facts are forward-looking statements about the future performance of Astellas. These statements are based on management's current assumptions and beliefs in light of the information currently available to it and involve known and unknown risks and uncertainties. A number of factors could cause actual results to differ materially from those discussed in the forward-looking statements. Such factors include, but are not limited to: (i) changes in general economic conditions and in laws and regulations, relating to pharmaceutical markets, (ii) currency exchange rate fluctuations, (iii) delays in new product launches, (iv) the inability of Astellas to market existing and new products effectively, (v) the inability of Astellas to continue to effectively research and develop products accepted by customers in highly competitive markets, and (vi) infringements of Astellas' intellectual property rights by third parties.

Information about pharmaceutical products (including products currently in development) which is included in this press release is not intended to constitute an advertisement or medical advice.

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SOURCE Astellas Pharma Inc.

FAQ

What is the Asset Purchase Agreement between Astellas and Sandoz?

Astellas and Sandoz entered into an Asset Purchase Agreement to transfer worldwide rights for MYCAMINE®, aiming to optimize management resources.

What are the financial terms of the MYCAMINE® transfer?

Astellas will receive between US$ 62.5 million and 75 million upfront plus potential sales-based milestone payments.

When is the closing date for the transaction between Astellas and Sandoz?

The transaction is tentatively expected to close in the first half of 2023.

How much did MYCAMINE® generate in sales for Astellas?

MYCAMINE® generated sales of JPY 18.9 billion for the fiscal year ending March 31, 2022.

What are the expected financial impacts of the MYCAMINE® transaction?

Astellas is reviewing potential financial impacts of the transaction for the fiscal year ending March 31, 2023.