AstraZeneca earns $100 million selling Nexium co-promotion rights in Japan to Daiichi Sankyo

Anglo-Swedish drug major AstraZeneca (LSE: AZN) has entered into an agreement with Japanese drugmaker Daiichi Sankyo (TKO: 4568) for the co-promotion and supply of Nexium (esomeprazole magnesium), a proton pump inhibitor, in Japan.

Under the terms of this agreement, AstraZeneca and Daiichi Sankyo will co-promote the product after it is approved for use in Japan. An application to clear Nexium marketing in Japan was first filed in February this year. AstraZeneca will manufacture and develop the product and Daiichi Sankyo will be responsible for its distribution.

Daiichi Sankyo will make an initial payment of $100 million to AstraZeneca, paying further undisclosed sums when the product is approved and sales target milestones are achieved, the companies noted.