Sanofi Buys Rare Cancer Drug For Up To $300 Million From AstraZeneca

Posted: Jul 27 2015, 8:19am CDT | by , in Misc


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Sanofi Buys Rare Cancer Drug for up to $300 Million from AstraZeneca
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  • AstraZeneca to close deal for rare cancer drug with Sanofi

AstraZeneca will sell the global rights of a rare cancer drug to Sanofi for $300 million dollars to the company’s rare disease specialist branch Genzyme.

Sanofi is making some deals that the chief executive of the company Pascal Soriot is arguing as a potential threat to the company’s financial state but Sanofi believes that buying the drugs that are effective yet not being distributed because of lack of the promotional and financial stability of their production company should be made available.

Such a drug that Sanofi has recently acquired the global rights is Caprelsa. Caprelsa is a drug that was produced by AstraZeneca. It is distributed across 28 countries for the treatment of medullary thyroid carcinoma.

The drug was sold for $48 million alone in the last year but it is not reaching its true potential due to AstraZeneca’s financial decline. Sanofi at this time is moving in with its rare diseases branch called Genzyme to acquire the rights for Caprelsa.

Genzyme will be acquiring the global rights for the drug distribution by paying $300 million. That will constitute of two installments; upfront payment of $165 million and milestone payments based on the drug's performance of up to $135 million.

AstraZeneca has analyzed it annual second half that would profit from the sale of Caprelsa. Sanofi has set the deal to take place in the second annual half which they assure will not disturb their budget for the year.

Although Genzyme and Sanofi are very confident about the deal. Soriot has said that such externalization deals can cost the company. The company however believes that they will achieve two goals by making such deals.

First of all they will buy off medicines and distribute them that will save them from producing large array of medicines from scratch with clinical trials and all. By buying already established and effective medicine, precious time and resources could be saved. That would give them ample time and resources to produce medicine for diseases that do not have treatment present for them.

The British company, Sanofi wants to make innovations in the field of medicine which includes its latest development of producing drugs for cardiovascular diseases, reported Reuters.

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<a href="/latest_stories/all/all/20" rel="author">Sumayah Aamir</a>
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