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AstraZeneca and Ionis close agreement

AstraZeneca Research and Development

AstraZeneca has closed a global development and commercialization agreement with Ionis Pharmaceuticals for eplontersen, formerly known as IONIS-TTR-LRX.

The companies will jointly develop and commercialize eplontersen in the US, while AstraZeneca will develop and commercialize it in the rest of the world, except in Latin America.

Financial considerations

Under the terms of the agreement, the upfront payment from AstraZeneca to Ionis is 200 million USD. AstraZeneca will make additional conditional payments of up to 485 million USD following regulatory approvals. It will also pay up to 2.9 billion USD of sales-related milestones based on sales thresholds between 500 million USD and 6 billion USD, plus royalties in the range of low double-digit to mid-twenties percentage depending on the region. The collaboration includes territory-specific development, commercial and medical affairs cost-sharing provisions.

“Under the terms of the agreement, the upfront payment from AstraZeneca to Ionis is 200 million USD. AstraZeneca will make additional conditional payments of up to 485 million USD following regulatory approvals.”

The transaction will be funded with cash and is expected to be neutral to Core earnings in 2021. It will be accounted for as an intangible asset acquisition, recognized initially at the upfront amount, with any potential future milestone payments capitalized into the intangible asset as they are recognized.

Ionis will continue to manufacture and supply eplontersen for the existing clinical studies and process qualification. AstraZeneca will be responsible for commercial supply, with transition timing to be agreed by both parties. AstraZeneca will book all sales generated under the agreement.

Photo: AstraZeneca