This isn’t a sleepy deal. AstraZeneca (NYSE: AZN) sold the ex-U.S. rights to its portfolio of seven established anesthesia medicines to Aspen Global Incorporated. Aspen Global is the holding company for Aspen Group‘s (OTCBB: ASPU) international business that manages and maintains intellectual property rights, and regulatory and commercial strategies of a portfolio of specialist and branded products.
The drugs are Diprivan (general anaesthesia), EMLA (topical anesthetic) and five local anesthesias (Xylocaine, Xylocard/Syloproct, Maracine, Naropin, Carbocaine and Citanest).
Under terms of the agreement, AGI will acquire the commercialization rights, outside the United States, to AZN’s portfolio of anesthesia medicines. Apen will pay $520 million upfront, and up to $250 million in a product sales-related payment, based on sales in the 24 months following completion. Aspen will also pay double-digit percentage trademark royalties on product sales.
AstraZeneca will manufacture and supply the products on a cost plus basis to AGI for an initial period of 10 years. Upon completion, Aspen will assume responsibility for all activities relating to the sale of the portfolio in all relevant markets. The transaction is expected to be completed in the first quarter of Aspen’s 2017 financial year.