Circassia Pharmaceuticals Gets U.S. Lung Drug Rights From AstraZeneca

By Philip Waller

LONDON--Shares in Circassia Pharmaceuticals PLC (CIR.LN) Friday rose 11% after it announced an up to $230 million deal with AstraZeneca PLC (AZN.LN) for certain commercial rights in the U.S. for two treatments for chronic obstructive pulmonary disease, or COPD.

The group said the agreement, which includes the Tudorza and Duaklir treatments, would double the number of marketed products in its portfolio and give it the potential to triple that within two years.

Tudorza is approved in the U.S. and about 60 further countries around the world, with total AstraZeneca revenues related to worldwide sales totaling $170 million in 2016.

Duaklir is in phase III development in the U.S. to treat COPD. It was initially approved in the E.U. in 2014 and also has clearance in 50 countries worldwide.

Circassia will also pay royalties to AstraZeneca on U.S. sales of Duaklir if it is approved.

The deal is expected to improve earnings for Circassia after one year and to be broadly cash neutral for three years, then cash generative.

Circassia will issue $50 million of its shares to AstraZeneca as part payment for the deal, which was overseen by joint corporate brokers Numis Securities and JP Morgan Cazenove.

At 0817 GMT, shares in Circassia were up 9.75 pence at 97 pence. Shares in AZN dropped 28 pence, or 0.6%, to 4838 pence.

-Write to Philip Waller at [e-mail]

(END) Dow Jones Newswires

March 17, 2017 05:01 ET (09:01 GMT)

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