AstraZeneca signs drug deal with Allergan

AstraZeneca’s global biologics research and development arm MedImmune has entered into a licensing agreement with Allergan for the global rights to MEDI2070, which is currently in a Phase IIb clinical trial for moderate-to-severe Crohn's disease and ready for Phase II for ulcerative colitis.

Under the terms of the deal, Allergan will make an upfront payment to AstraZeneca of $250m for the exclusive, worldwide licence to develop and commercialise the drug.

In addition, Allergan may make potential additional payments to AstraZeneca of up to $1.27bn, dependent on the achievement of agreed upon success-based development and sales-related milestones, and pay tiered royalties on potential sales of the medicine.

MedImmune has been leading the clinical development for MEDI2070 under a collaboration agreement AstraZeneca entered into with Amgen Inc back in March 2012. Under the terms of this agreement, AstraZeneca will pay Amgen one third of all payments and royalties received from Allergan and a single-digit percentage inventor royalty on the drug.

Bahija Jallal, executive vice president of MedImmune, said: "This agreement demonstrates our sharp focus on three main therapy areas while creating value from the increased R&D productivity and innovative science in our pipeline through collaborations. Allergan has significant experience in gastrointestinal and inflammatory diseases and is the right partner to progress the development and commercialisation of MEDI2070."