AstraZeneca in deal for Rigel RA drug that could cost up to $1.25 billion

In what looks like ranking among the biggest drug licensing deals, Anglo-Swedish major AstraZeneca has entered into an exclusive worldwide license accord for the global development and commercialization of fostamatinib disodium (R788), US firm Rigel Pharmaceutical's late-stage investigational product for rheumatoid arthritis (RA) and additional indications, in a deal that could cost the UK-headquartered company as much as $1.25 billion. However, it should help it relieve some of the problems it will soon experience with generic competition on some of its top selling drugs.

Once the agreement is effective, AstraZeneca will make an upfront payment to Rigel of $100 million with up to an additional $345 million payable if specified development, regulatory and first commercial sale milestones are achieved. Rigel will also be eligible to receive up to an additional $800 million of specified, sales-related milestone payments if the product achieves considerable levels of commercial success, as well as significant stepped double-digit royalties on net sales worldwide.

Mega licensing deals