AstraZeneca reports Crestor to be divested to Grunenthal in Europe

AstraZeneca has agreed to sell the rights to Crestor and associated medicines in over 30 countries in Europe, except the UK and Spain, to Grunenthal GmbH, the company announced. AstraZeneca will continue to manufacture and supply Crestor to Grunenthal during a transition period. AstraZeneca will also continue selling the medicine in other countries, including those in North America, in Japan, China and other emerging markets. The divestment is anticipated to close in the first quarter of 2021, subject to customary closing conditions and regulatory clearances, upon which Grunenthal will make an upfront, non-contingent payment to AstraZeneca of $320M and may also make future milestone payments of up to $30M. Income arising from the upfront and future payments will be reported in AstraZeneca's financial statements within Other Operating Income & Expense. The divestment will not impact the company's financial guidance for 2020, AstraZeneca said. Ruud Dobber, Executive Vice President, BioPharmaceuticals Business Unit, said: "This agreement supports the management of our mature medicines to enable reinvestment into the pipeline and bringing new, innovative treatments to patients. Grunenthal previously acquired the rights to several established AstraZeneca medicines and is well placed to ensure continued access to Crestor for patients across Europe."