AstraZeneca pays MAP a potential $900 million for budesonide
This article was originally published in Scrip
AstraZeneca is to pay up to $900 million to co-develop and commercialise Map Pharmaceuticals' unit dose budesonide (UDB).
Map's nebulised formulation of budesonide is in Phase III development for paediatric asthma and has the potential to be nebulised more quickly and at a lower dose than existing treatments, Map claims.
The agreement will boost AstraZeneca's portfolio of late-stage respiratory products, a therapeutic focus area for the company. It has already launched Symbicort (budesonide plus formoterol) but has no other Phase III products in this area, although it has several new compounds in Phase I and II development.
AstraZeneca will pay Map $40 million up front and an additional $35 million upon achieving the primary endpoint and safety results in the ongoing Phase III study.
Map is eligible for up to $240 million in other potential development and regulatory milestones and up to $585 million if the product is commercialised successfully. It could also receive significant double-digit royalties on net sales of UDB worldwide.
The Anglo-Swedish company will support and finance the establishment of a Map sales force to co-promote the product in the US for a certain period after product launch. AstraZeneca has the rights to the product outside the US. It will be responsible for future UDB development costs and will reimburse Map for the costs of future product development activities for US registration.
Map's share price jumped from $4.59 on December 18th to close at $5.65 on December 19th, the day the deal was announced.