Portfolio company Circassia Pharmaceuticals plc , a specialty pharmaceutical company focused on respiratory disease and allergy, has reached agreement with AstraZeneca to enter into a collaboration to secure commercial rights for two chronic obstructive pulmonary disease products, Tudorza® and Duaklir® for a maximum total consideration of US$230 million.
The Products, Tudorza® and Duaklir®, represent a clear strategic fit with Circassia's focus on respiratory medicines. Tudorza® is approved in the United States and approximately 60 further countries; Duaklir® is in phase III development in the United States for the treatment of COPD and has been approved in the European Union and 50 other countries.
The proposed transaction provides Circassia an opportunity to transform its product portfolio and to expand its commercial infrastructure in the USA, positioning Circassia for future product acquisition and in-licensing opportunities. Due to its size, the transaction is subject to the approval Circassia’s shareholders.
"This proposed transaction is an ideal fit with Circassia's strategy and respiratory focus. It represents a transformational opportunity for the Company, doubling the number of marketed products in our portfolio, with the potential to triple the current number within two years. Through an initial commercial collaboration with AstraZeneca, we plan to double our U.S. sales force to promote Tudorza® as our priority, as well as our existing NIOX® products, transforming Circassia into a world-class respiratory business positioned for future in-licensing and M&A. In addition, the transaction structure is highly attractive, allowing us to fund the consideration without further investment anticipated from shareholders, while at the same time welcoming AstraZeneca to our share register."