AstraZeneca has completed the licensing agreement between MedImmune, its global biologics research and development arm, and Allergan plc, for the global rights to MEDI2070.
MEDI2070 is an IL-23 monoclonal antibody currently in a Phase IIb clinical trial for moderate-to-severe Crohn’s disease and ready for Phase II for ulcerative colitis, diseases that sit outside AstraZeneca’s three main therapy areas.
AstraZeneca said on Thursday it will not retain a significant ongoing interest in MEDI2070. Therefore, the company says, income from the transaction will be reported as Other Operating Income in the its financial statements, including the upfront payment, which will be booked in the fourth quarter of 2016, and development and sales-related milestones and tiered royalties on potential sales of the medicine.
Under the terms of the agreement talked about in October, Allergan was to make an upfront payment to AstraZeneca of $250 million for the exclusive, worldwide licence to develop and commercialise MEDI2070. In addition, Allergan was to make potential additional payments to AstraZeneca of up to $1.27 billion, dependent on the achievement of agreed upon success-based development and sales-related milestones, and pay tiered royalties on potential sales of the medicine.