AstraZeneca enters up to $1B licensing deal with AtheroGenics for AGI-1067

Europe's third-largest drugmaker, AstraZeneca, has entered into a licensing agreement worth up to $1.0 billion with US firm AtheroGenics for the global development and commercialization rights to the latter's inflammatory cardiovascular product candidate AGI-1067, an investigational oral drug for the treatment of atherosclerosis.

Commenting on the deal, analysts at Lehman Brothers see a 60% probability that AGI-1067 will be launched in 2007, and forecast peak annual sales of the drug in the USA of $2.0 billion.

Under the terms of the accord, AtheroGenics will receive an upfront fee of $50.0 million and, subject to the achievement of specific milestones including a successful outcome in the ARISE trial, will be eligible for development and regulatory milestones of up to $300.0 million. The agreement also provides for progressively demanding sales performance-related milestones of up to a further $650.0 million, says AstraZeneca. In total, if successfully commercialized, the US firm will be eligible for fees and milestones of up to $1.0 billion. AtheroGenics will also receive stepped royalties on product sales, which reflect the late-stage development status and market potential of AGI-1067.