AstraZeneca, Forest Labs Ink Ceftaroline Deal

U.K. pharmaceutical company AstraZeneca PLC (AZN.LN) Wednesday said it inked a deal to develop and sell an experimental anti-infection treatment from Forest Laboratories Inc. (FRX) in Europe and other territories.

The drug, ceftaroline, is being developed by U.S.-based drug developer Forest for the treatment of complicated skin infections and a form of pneumonia. It has been shown to be effective against bugs like MRSA.

The deal with AstraZeneca covers all territories excluding the U.S., Canada and Japan. AstraZeneca will take over clinical development and apply for regulatory approval of ceftaroline in these territories. It said it intends to file for marketing authorization in Europe by the end of 2010.

AstraZeneca said it will pay Forest a fee, royalties on sales and payments for reaching certain sales milestones. Further financial details weren't disclosed.

Demand for new anti-infection drugs is being driven by the ever-increasing development of bacterial resistance to current antibiotics.

AstraZeneca wants to build a franchise in the treatment of infection and has a research facility dedicated to its study in the U.S.

In July, it said it would continue development of CytoFab, an experimental treatment for severe sepsis licensed from BTG PLC (BGC.LN).

Company Web site: www.astrazeneca.com

-By Jason Douglas, Dow Jones Newswires; 44-20-7842-9272; [e-mail]