AstraZeneca divests gastro drug for $215 million
- Tillotts Pharma, part of the Zeria Group, is acquiring Entocort (budesonide) from AstraZeneca (AZ).
- Endocort is used to treat Crohn's disease and ulcerative colitis.
- It is sold globally in more than 40 countries, and generated $53 ex-U.S. in 2014.
For AZ's CEO, Pascal Soriot, the endgame is to successfully developing a promising pipeline of drugs across therapeutic areas, including cancer, respiratory disease and diabetes, and to achieve target revenue goals with a fous on 2023. However, in order to do that, some strategic divestment and externalization of various projects have been necessary. In addition to divesting Entocort, AZ has also agreed to externalization deals with Eli Lilly for an Alzheimer's disease project and with Daiichi Sankyo for a new constipation drug.
Some onlookers feel that AZ is relying too much on selling, renting out, or otherwise letting go of various drug assets. But Soriot has a long-range plan: The goal is for AZ to have $45 billion in revenues by 2023. Divestiture is apparently part of that long-term plan.