Astrazeneca Sells Rights For Constipation Drug To RedHill Biopharma

AstraZeneca PLC (LON:AZN) has sold the rights to its drug Movantik to RedHill Biopharma for USD 67 mln.

The treatment, used in patients suffering from constipation caused by painkillers, generated sales of US$96mln in the US alone last year.

The FTSE 100-listed firm has already divested the rights to sell the drug in Europe, Canada and Israel while the transaction, scheduled to complete in the first quarter, is not expected to hit guidance for 2020.

“This divestment supports our strategy to realise value from medicines in our portfolio that are mature or outside our current scope to enable reinvestment in our main therapy areas,” said Ruud Dobber, executive vice president at AstraZeneca’s biopharmaceuticals business unit.

Shares were flat at 7,416p on Tuesday morning.-Proactive Investors