AZ News From The Street 2016

Discussion in 'AstraZeneca' started by anonymous, Jan 4, 2016 at 10:06 AM.

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  1. anonymous

    anonymous Guest

    Pascal says he really wants to shake things up:



    By Ben Hirschler

    LONDON, May 18 (Reuters) - AstraZeneca Chief Executive Pascal Soriot is a big believer in science, and the biggest experiment of his career is the reinvention of the drugmaker.

    The $500 million corporate headquarters and research hub emerging amid cranes on the southern edge of the university town of Cambridge symbolises his aim to create a science-led company with uniquely close ties to academia.

    For employees, these are uncomfortable times. Thousands of job have been cut globally at the company in the past three years, with more to come. Some staff are also reluctant to move to Cambridge, with its high house prices, from north-west England where the company has a strong presence dating from its time as part of the old ICI chemicals empire.

    Soriot, however, relishes the chance to shake things up by setting up home near world-renowned university labs - where he says the firm is better placed to hire the "best of the best" - while shrinking its operations to focus on core areas like cancer, respiratory and cardiovascular disease.

    "In the past, we've had too much stability," the CEO said in an interview with Reuters that gives some of the clearest indications yet of the scale of the cultural change he intends to push through at the company.

    "We had people who never moved and turnover of 1 or 2 percent. That might sound good but it's actually not, because you don't have new ideas flowing through the place."

    The stakes are high. Two years after spurning a $100 billion bid from Pfizer, AstraZeneca is going through the biggest "cliff" of patent expiries the drug industry has ever seen, wiping off more than half of its sales - or $17 billion - in 2011-2017

    That has forced Soriot to seek new routes to profit and his overhaul of the company is now entering a pivotal phase, with make-or-break trial results and drug approvals due over the next 12 months, coinciding with the move to Cambridge.

    As with any experiment, the outcome of Soriot's reinvention is uncertain - and investors are divided.

    Neil Woodford of Woodford Investment Management, the seventh largest AstraZeneca shareholder, is convinced the company will re-emerge as a successful player focused on specialty drugs like cancer treatments rather than mass-market medicines. He has added to his stake recently.

    But Andy Smith, chief investment officer at fund manager Mann Bioinvest, says Soriot has yet to prove his plan will pay off. "The big question hanging over his tenure is how close he can get to showing actual value from the pipeline, rather than promised value," he said.

    'IMPLODING'

    No other pharmaceutical company has moved itself wholesale to an academic centre. Soriot argues the move is already paying off for some 1,600 staff, nearly a quarter of its UK workforce, now in rented space around Cambridge who are liaising far more closely with academic researchers.

    "It is fundamentally changing the way we operate," said the 56-year-old, who trained as a veterinarian in France. Most of the staff will move into the new building from late 2017.

    Soriot said he had no choice but to overhaul AstraZeneca when he took over in October 2012, due to the patent "cliff".

    "The company was imploding," he said bluntly.

    His answer has been to invest in internal research and bolt-on acquisitions, including more than $7 billion of deals at the end of 2015, to rebuild the company's drug pipeline.

    This includes cancer drugs that boost the immune system, which are the hottest area of drug research right now, although AstraZeneca also has high hopes for other approaches to fighting tumours.

    That makes oncology the area with the greatest potential to drive future sales at AstraZeneca, as the company grapples with a wave of patent expiries on older products, such as its cholesterol fighter Crestor and stomach acid pill Nexium.

    Investors are anxious for proof Soriot's prescription will work, since AstraZeneca shares are languishing 28 percent below the 55 pounds offered by Pfizer and earnings are expected to fall in 2016 and 2017.

    AstraZeneca has also had to cope recently with some senior executive departures, including the loss this week of its North America head to Novartis.

    At the height of the takeover battle, the company went public with a forecast that sales would rise by three-quarters to $45 billion by 2023 - a hostage to fortune, perhaps, but a target Soriot remains confident will be met.

    "I might not be here to see if we achieve that in 2023 but people won't have to wait until then. If we succeed, the share price will reflect the value of the company much earlier than that," he said. "I think it is going to take another 12 months and then hopefully we can show people what they want to see."

    STEPS FORWARD, BACK

    So far, there have been some steps forward, like success with new cancer drugs Tagrisso and Lynparza. The company ticked another box in its recovery story on Tuesday with good results for a new asthma drug.

    But there have also been setbacks, including the loss of a fast-to-market opportunity for AstraZeneca's big immuno-oncology hope durvalumab.

    The latter has increased the pressure to prove that a combination treatment mixing durvalumab and tremelimumab can help in lung cancer, giving AstraZeneca a foothold in a market currently dominated by Bristol-Myers Squibb.

    "Pascal has played his hand well but now he's at the point where it gets harder," said one top executive at a rival company. "He's going down to the valley floor on earnings and we don't know how the clinical data will play out to get the business up the other side."

    AstraZeneca has also used so-called externalisation income from licensing out non-core products to underpin profits, leading to criticism over earnings quality from some analysts.

    With R&D spending equivalent to 24 percent of sales, AstraZeneca's science budget exceeds the industry average. But Soriot aims to push selling, general and administrative expenses down to 30-32 percent from 35 percent.

    The CEO says investors need patience to see through a turnaround story that, with luck, will mirror the recovery Bristol-Myers, now the star of the pharma sector.

    "There will be a tipping point where people see a sufficient number of projects progressing positively and then they can see the future is bright."
     

  2. anonymous

    anonymous Guest

    Take note that Pascal does not mention diabetes as one of AZ's priorities.
     
  3. anonymous

    anonymous Guest

    We've been warned.

    "In the past, we've had too much stability," the CEO said in an interview with Reuters that gives some of the clearest indications yet of the scale of the cultural change he intends to push through at the company.

    "We had people who never moved and turnover of 1 or 2 percent. That might sound good but it's actually not, because you don't have new ideas flowing through the place."
     
  4. anonymous

    anonymous Guest

    Oncoogy had better be good:

    AZ at ASCO:

    AstraZeneca Highlights Continued Progress of Oncology Pipeline at ASCO 2016 Leadership in DNA Damage Response Therapies

    73 abstracts presented at ASCO with 19 related to olaparib and new potential medicines targeting DNA damage response in multiple tumor types


    Continued momentum of immuno-oncology medicines including new data on durvalumab in bladder cancer, underpinning the Breakthrough Drug Designation, and new data in first-line NSCLC

    Further insights on osimertinib’s ability to penetrate the blood-brain barrier in patients with metastatic lung cancer, and acalabrutinib in chronic lymphocytic leukemia

    AstraZeneca May 19, 2016 7:00 AM
    • WILMINGTON, Del.--(BUSINESS WIRE)--


      AstraZeneca and its global biologics research and development arm, MedImmune, will provide an update on their extensive investigational oncology pipeline at the annual meeting of the American Society of Clinical Oncology (ASCO) in Chicago, June 3-7, 2016.

      Highlights will include new data demonstrating the strength and versatility of AstraZeneca’s industry-leading line of DNA damage response (DDR) medicines in multiple types of cancer. New data will highlight the continued momentum behind AstraZeneca’s numerous immuno-oncology (IO) programs, and showcase small-molecule developments including osimertinib in leptomeningeal (brain) disease and the highly-selective Bruton’s tyrosine kinase (BTK) inhibitor, acalabrutinib, in chronic lymphocytic leukemia (CLL).

      Sean Bohen, Executive Vice President, Global Medicines Development and Chief Medical Officer at AstraZeneca, said, “Oncology is a strategic priority for AstraZeneca because of the potential of our broad pipeline to offer transformational therapies in cancer care. At ASCO, we will update on our next-generation portfolio focusing on DNA damage response as a breakthrough paradigm in cancer treatment, including new long-term overall survival data for olaparib. Our increased commitment to DDR therapies complements developments in our exciting immuno-oncology pipeline, from which we are expecting clinical results over the coming year.”

      DDR: a promising scientific platform, a leading position for AstraZeneca

      DDR is a term describing the network of cellular pathways that minimize the daily impact of DNA damage. Currently, many cancers are known to have defects in DDR pathways, which makes them dependent on and therefore, highly sensitive to inhibition of the remaining DDR pathways. Targeting DDR deficiencies to preferentially help kill cancer cells, while theoretically minimizing the impact on normal cells, has potential for selective, reasonably tolerated therapies to hopefully improve survival in multiple cancers.

      AstraZeneca is developing a comprehensive pipeline of compounds that target molecular pathways across the DDR system. These include the PARP inhibitor olaparib; WEE1 inhibitor AZD1775; ATM inhibitor AZD0156; ATR inhibitor AZD6738; and Aurora B Kinase inhibitor AZD2811. These compounds act on different cell-cycle points to help prevent tumor cells from replicating.

      At the ASCO congress, DDR presentations will highlight:
      • The potential for maintenance of DDR therapies as shown by olaparib overall survival data from Study 19 in ovarian cancer (Abstract # 5501). This abstract has been selected as a “Best of ASCO” abstract
      • Opportunities for combination approaches with DDR and immuno-oncology therapies as shown in a Phase I study of the PD-L1 inhibitor, durvalumab, in combination with olaparib or a VEGFR inhibitor, cediranib, in women's cancers (Abstract # 3015)
      • The importance of selecting patients with a DDR pathway defect using the right diagnostic tool (Abstract # 4041)
      • The potential of DDR therapies against multiple biological DDR targets in different tumor types, with studies of the highly-selective WEE1 inhibitor, AZD1775, in advanced high-grade serous ovarian cancer (Abstract # TPS5610), squamous cell carcinoma of the head and neck (SCCHN) (Abstract # TPS6106), advanced solid tumors (Abstract # TPS2608) and glioblastoma (GBM) (Abstract # 2008)
     
  5. anonymous

    anonymous Guest

    any word on how the AZ ASCO presentations and data will likely be received?
     
  6. anonymous

    anonymous Guest

    Another recent acquisition gone bad?


    AstraZeneca is suddenly finding out how it feels to be the underdog.
    Until Friday, AstraZeneca looked smart for its November purchase of ZS Pharma and its potential blockbuster hyperkalemia drug ZS-9. Relypsa, which has a competing drug on the market, looked in trouble. Though its treatment for the blood condition was approved in October, it's saddled with restrictive FDA guidelines and slow sales growth. The company's high cash burn rate led it to take out $150 million in loans in April, expensively.

    All that changed early Friday morning, when AstraZeneca announced the FDA had rejected ZS-9. Relypsa is remembering how to enjoy life again, and AstraZeneca may be diverting scientists into time-machine research.

    It looks like AstraZeneca may have shelled out too early and on the wrong company. Relypsa, in contrast, may be back on the blockbuster track and back to being an acquisition target. Relypsa's shares spiked as much as 27 percent Monday morning, while AstraZeneca's dropped as much as 1 percent.

    The FDA declined to approve ZS-9 after finding issues in a manufacturing inspection. The agency also said it hasn't reviewed some of AstraZeneca's data on the drug. The company is working to figure out next steps and will try again for approval, but the lack of a timeline makes things unpredictable. Resolving the agency's issues and getting a new approval date may take a year or more. And the FDA could still reject the drug again based on its clinical data.

    Until Friday, analysts expected ZS-9 to outsell Relypsa's drug Veltassa by nearly $100 million in 2020. That was based partly on expectations AstraZeneca's drug, unlike Veltassa, could be approved without a so called "black box" warning label -- the FDA's strictest warning -- or to treat a broader group of patients.

    The bullish scenario for AstraZeneca would have put Relypsa in serious trouble; doctors likely would have preferred a freely approved ZS-9 to Veltassa, creating more acute cash worries. The company had $205 million in cash on hand as of March 31, then raised $150 million with its debt financing in May. But Relypsa has also projected spending $275 to $300 million this year. That doesn't leave much of a cushion.

    Now Relypsa has more time -- potentially a lot more time -- for its drug to gain traction in the market. With what now looks like prescient timing, Relypsa submitted new data to the FDA Wednesday that it hopes will convince the agency to lift Veltassa's black box. That could give it a much stronger competitive position.
     
  7. anonymous

    anonymous Guest


    SHOCKER
    ANOTHER SCREW UP BY AZ!
     
  8. anonymous

    anonymous Guest

    Once again our stupid shit CEO fucks up again! Yet, the Board continues to back this idiot. You can't make this shit up!
     
  9. anonymous

    anonymous Guest

    if an asset is for sale, someone doesn't want it anymore.
     
  10. anonymous

    anonymous Guest

    AstraZeneca cuts 1,600 contract reps, in-house force in drive to save $1.1B: sources
    by Tracy Staton

    Last month, AstraZeneca said it would cut $1.1 billion in annual costs, zeroing in on sales and administrative expenses for a big part of those savings.

    Now, the U.K.-based company’s sales operation in the U.S. is feeling the effects.

    AstraZeneca cut its contract salesforce from Publicis Touchpoint Solutions, the company confirmed in an emailed statement Tuesday, and is reviewing its AstraZeneca sales staffing as well.

    Publicis handles AstraZeneca brands in a variety of therapeutic areas, AstraZeneca spokeswoman Abby Bozarth said. The clinical educator team will also see some cutbacks.

    “We flexibly shape our selling teams to fit the realities of the marketplace and maximize opportunities for both our growth and future brands,” Bozarth said.

    Publicis sales reps on the AstraZeneca force said the cutbacks would hit 1,600 contract employees, largely in diabetes, although the respiratory team and the Movantik force would also see some reductions. The sources spoke on condition that they remain anonymous.

    The Publicis cuts take effect June 30. They were announced via conference call Monday.

    AstraZeneca would not confirm hard numbers on the staffing changes. But the company said it’s revisiting its “field force deployment” as part of its “ongoing strategy to operate its business more efficiently.”

    Bozarth said the company is working through the details of the cutbacks now. “We are reviewing all staffing as we make decisions on how best to align our sales organization for success,” and “this includes both AstraZeneca and contracted sales force roles.”

    As Bozarth pointed out, pharma companies commonly use contract sales groups to augment in-house sales forces as a way to manage staffing levels. Drugmakers often grow and shrink their sales teams by adding or subtracting contract reps. The approach “gives us the flexibility to change our sales force size to react to market changes and to meet customer needs,” Bozarth said. “[T]hese changes will not impact our ability to bring innovative medicines to people who need them.”
     
  11. anonymous

    anonymous Guest

    Another asset sold off:

    AstraZeneca sells EU, Latam gout drug rights to Gruenenthal
    7 hours ago

    LONDON, June 2 (Reuters) - AstraZeneca has sold the European and Latin American rights to its new gout drug Zurampic to private German drugmaker Gruenenthal for up to $230 million, following a similar disposal of U.S. rights to the medicine.

    The British group said on Thursday up it would receive up to $230 million in sales and other related milestones over the lifetime of the contract, with Gruenenthal also paying royalties on sales.

    In April, Ironwood Pharmaceuticals bought U.S. marketing rights to the newly approved drug for up to $265 million.

    AstraZeneca has a strategy of selling certain rights to non-core medicines as it invests in new drugs. But the disposal of Zurampic has led some analysts to question the success of its past acquisitions, since AstraZeneca only bought the drug's original developer Ardea Biosciences in 2012 for $1.26 billion.
     
  12. anonymous

    anonymous Guest

    And question they should. The CEO here is ripping it all apart to prepare for acquisition. He will never make good on his promises so selling it off. History repeats itself again
     
  13. anonymous

    anonymous Guest

    Looks like they are getting back less than 50 cents on the dollar from the Ardea purchase unless Ardea has something else that is very valuable.
     
  14. anonymous

    anonymous Guest

  15. anonymous

    anonymous Guest

    For a company claiming to be now be mostly concentrated in oncology, there sure has not been any dramatic news of any new high impact treatments at ASCO by AZ. Only incremental advances for things that we all already knew about. This is not what has been seen from companies like BMS, Roche and Merck. Is AZ saving a blockbuster announcement at ASCO for later in the meeting as a grand finale? ASCO has very strict news embargo rules, so that could still be the case, but so far nothing really new has come from AZ that would move the stock up.
     
  16. anonymous

    anonymous Guest

    Here is something from AZ at ASCO. Nice results for a small group of patients. The agent crosses the blood brain barrier, so it can be effective in CNS cancer. Not a real big commercial opportunity probably, but its a nice result anyway.

    AstraZeneca Presents Tagrisso Leptomeningeal Disease Data

    By Zacks Equity Research 3 hours ago
    AstraZeneca plc AZN presented clinical and safety data from a phase I study (BLOOM) on its lung cancer drug, Tagrisso (osimertinib), in patients with leptomeningeal (LM) disease at the annual meeting of the American Society of Clinical Oncology.

    Updated results showed that Tagrisso (160 mg once daily) demonstrated activity through assessments with MRI imaging intracranial response irrespective of the T790M mutation status of patients. Additionally, Tagrisso crossed the blood-brain barrier. The drug resulted in a decline in central nervous system lesions in patients with LM disease in addition to neurological improvement. Moreover, Tagrisso demonstrated a manageable tolerability profile over a treatment period of up to 11 months.

    Per the company’s press release, LM disease is a complication of epidermal growth factor receptor (EGFR) mutation-positive advanced non-small cell lung cancer (NSCLC), where cancer cells spread to the cerebrospinal fluid. LM disease affects roughly 5% of patients with NSCLC and nearly 9% of those with EGFRm NSCLC.

    Considering that the treatment of LM disease is difficult, the safety, tolerability and activity profile that Tagrisso has demonstrated is promising.

    We note that Tagrisso (80 mg once daily) gained accelerated approval in Nov 2015 for the treatment of patients with metastatic EGFR T790M mutation-positive NSCLC, as detected by an FDA-approved test, who have progressed on or after EGFR tyrosine kinase inhibitor therapy. It is also approved for the treatment of patients with EGFR T790M mutation-positive locally advanced/metastatic NSCLC in the EU.

    Currently, Tagrisso is also being evaluated in the adjuvant setting and in the metastatic first-line setting, including patients with brain metastases, as well as in combination with other treatments.

    AstraZeneca is working on strengthening its oncology product portfolio and has several candidates in its pipeline. The company’s target is to launch at least six new medicines between 2014 and 2020.
     
  17. anonymous

    anonymous Guest

    Diabetes presentations at ADA just announced:

    AstraZeneca to Highlight Scientific Advancements Across Its Diabetes Portfolio at the American Diabetes Association 76th Scientific Sessions
    • More than 60 accepted abstracts advancing the understanding of type 2 diabetes treatment and management of its multiple comorbidities
    • 21 abstracts on dapagliflozin, including an investigation of its effects on cardiovascular risk factors in type 2 diabetes with varying degrees of renal function and insights on its use in a real-world setting
    • 18 abstracts on exenatide, including its effect on glycemic fluctuations in type 2 diabetes and investigating its use with dapagliflozin in patients with non-diabetic obesity
    • 10 abstracts on new investigational compounds and notable late-breakers exploring their effects on multiple comorbidities and risk factors beyond glycemic control

    AstraZeneca Pharmaceuticals 2 hours ago
    • WILMINGTON, Del.--(BUSINESS WIRE)--


      AstraZeneca and its global biologics research and development arm, MedImmune, today announced that more than 60 abstracts reporting results of the company’s research and development in diabetes have been accepted at the 76th Scientific Sessions of the American Diabetes Association (ADA) in New Orleans, June 10-14, 2016.

      Presentations include data evaluating FARXIGA®(dapagliflozin), BYDUREON®(exenatide extended-release), ONGLYZA® (saxagliptin) and BYETTA® (exenatide). Late-breaking data will also be presented, including investigational data on the effect of MEDI0382, a novel dual-agonist of the glucagon-like peptide 1 (GLP-1) and glucagon receptors on glycemic control and weight, and effect of MEDI4166, a novel fusion molecule of an anti-proprotein convertase subtilisin/kexin type 9 (PCSK9) monoclonal antibody and a GLP-1 analog on glucose control and cholesterol.

      Elisabeth Björk, Vice President, Head of Cardiovascular and Metabolic Diseases, Global Medicines Development, AstraZeneca, said: “The breadth of our scientific data at ADA illustrates our ‘whole patient’ approach to diabetes research, where the ultimate goal is to achieve patient outcomes beyond glycemic control with a strong focus on delaying cardiovascular and chronic kidney disease complications.”

      The studies to be presented evaluate the management of multiple risk factors associated with type 2 diabetes, therapeutic durability and suboptimal glycemic control, early-stage research and development, safety and efficacy of combination therapies, and advances in diabetes care and global treatment patterns.

      Robert Henry, MD, Chief, VA Endocrinology & Metabolism, Professor of Medicine, UC San Diego School of Medicine, said: “AstraZeneca’s strong global collaborations with health experts, patient advocates and policymakers have established it as a leader in transforming the management and treatment of diabetes. At ADA, the company will present a wealth of scientific knowledge generated with these partners that examines the interrelated nature of diabetes and its comorbidities, and explore novel, early approaches to treatment.”

      Notable clinical and pre-clinical data being presented across areas of focus for AstraZeneca and MedImmune include:

      Data evaluating the effect of dapagliflozin and exenatide on risk factors in patients with type 2 diabetes
      • Effects of Dapagliflozin on Cardiovascular Risk Factors at Varying Degrees of Renal Function (Poster 1095-P, Saturday June 11, 12:30 pm CDT)1
      • Safety and Efficacy of Dapagliflozin in Combination with Potassium-Sparing Agents (Poster 1094-P, Saturday June 11, 12:30 pm CDT)2
      • Baseline Characteristics of Patients Enrolled in the Exenatide Study of Cardiovascular Event Lowering (EXSCEL) (Poster 1039-P, Saturday June 11, 11:30 am CDT)3
      Studies assessing the long-term effect and durability of AstraZeneca diabetes treatments on glycemic control
      • Effects of Dapagliflozin, a Sodium Glucose Cotransporter 2 Inhibitor, on 24-hour Glycemic Control in Patients with Type 2 Diabetes (Poster 1185-P, Sunday June 12, 12:00 pm CDT)4
      • Effect of Exenatide Once-Weekly on Glycemic Fluctuations in Patients with Type 2 Diabetes (Poster 1014-P, Sunday June 12, 12:00 pm CDT)5
      • DURATION-1 Extension in Patients with Type 2 Diabetes: Efficacy and Tolerability of Exenatide Once-Weekly Over 7 Years (Poster 1041-P, Saturday June 11, 11:30 am CDT)6
      • Time to Treatment Intensification and its Association with Subsequent Glycemic Control Among Patients with Type 2 Diabetes (Poster 1218-P, Saturday June 11, 12:30 pm CDT)7
      Early-stage research and development evaluating novel approaches to diabetes and associated metabolic conditions
      • MEDI4166 A PCSK9 Ab-GLP-1 Fusion Molecule: Impact on Antidiabetic and Antihyperlipidemic Effects in Rodents and Non-human Primates (Late-Breaker LB-35, Sunday June 12, 12:00 pm CDT)8
      • Effect of a Dual GLP-1/Glucagon Receptor Agonist on Steatosis and Indices of Non-Alcoholic Steatosis (NASH) Compared to GLP-1 Receptor and FXR Agonists in a Mouse Model of NASH (Oral 71-OR, Saturday June 11, 8:30 am CDT)9
      • MEDI0382, Effects of a GLP-1/Glucagon Dual Agonist on Safety/Tolerability Endpoints in a Single Dose Healthy Volunteer Study (Late-Breaker LB-107, Sunday June 12, 12:00 pm CDT)10
      • Acute metabolic effects of MEDI0382, a GLP-1/Glucagon Dual Agonist, in Wild Type and GLP-1 Receptor Knock-Out (GLP-1RKO) Mice (Oral 134-OR, Saturday June 11, 1:45 pm CDT)11
      Real-world evidence to help drive insights into treatment patterns globally
      • Advances in Diabetes Care 1996 to 2012: A Great Investment (Oral 350-OR, Monday June 13, 4:30 pm CDT)12
      • Real-World Clinical Outcomes Among Exenatide Once-Weekly Initiators Compared to Matched Initiators of Basal Insulin (Poster-1056-P, Saturday June 11, 11:30 am CDT)13
      • Suboptimal Glycemic control in Patients with Type 2 Diabetes: Retrospective Data from 22,272 Individuals (Poster 1558-P, Sunday June 12, 12:00 pm CDT)14
      • ...
     
  18. anonymous

    anonymous Guest

    More externalization action from AZ:


    AstraZeneca sells rights to anesthetics for up to $770 million
    6 hours ago
    • By Ben Hirschler


      LONDON (Reuters) - AstraZeneca (AZN.L) has sold the marketing rights to a portfolio of anesthetics for up to $770 million in the latest so-called externalization deal to raise funds for investment in new drugs.

      South Africa's Aspen Pharmacare (APNJ.J) will market the seven established medicines outside the United States under the deal, which follows the sale of U.S. rights to the anesthetics 10 years ago to Abraxis, now part of Fresenius Kabi (FRES.M3).

      Aspen will pay AstraZeneca $520 million upfront and up to $250 million in sales-related payments, as well as double-digit percentage trademark royalties, the companies said on Thursday.

      Aspen Chief Executive Stephen Saad said it was an "excellent opportunity" for the South African firm and its shares jumped 10 percent in Johannesburg. AstraZeneca stock fell 0.8 percent.

      The agreement covers Diprivan, used for general anesthesia, EMLA, a topical anesthetic, and five local anesthetics. The anesthetics, which are sold in more than a hundred countries, had sales in 2015 of $592 million.

      AstraZeneca will continue to manufacture and supply the products on a cost plus basis to Aspen for an initial 10 years.

      AstraZeneca has used externalization income from licensing out products in non-core areas, such as neuroscience, to help fund investment in new medicines in cancer and other fields.

      Externalization has helped underpin AstraZeneca's profits at a time it is facing a raft of patent expiries on previous blockbuster drugs, such as cholesterol fighter Crestor and heartburn medicine Nexium, but it has led to criticism about the quality of earnings from some analysts.

      Externalization deals contributed $1.1 billion to revenue last year and the company has said the figure will be higher in 2016.