ASTRAZENECA AND SHIONOGI
SETTLE ARBITRATION AND
EXTEND LICENCE AGREEMENT FOR CRESTOR®
AstraZeneca and Shionogi & Co. Ltd. today announced the full resolution of arbitration proceedings related to the treatment of certain excise taxes and other specific items in the calculation of royalties on CRESTOR® sales. In addition, AstraZeneca and Shionogi & Co. Ltd. announced the extension of the global licence agreement for CRESTOR® and the modification of the royalty structure, effective 1 January 2014.
The new agreement provides greater certainty for each of the parties in terms of the quantum of royalties due under the agreement and the period over which they will be payable.
Under the revised terms of the agreement, the structure of royalty payments from AstraZeneca to Shionogi has been modified to reduce the effective royalty rate in 2014-2015; the amount of this royalty rate reduction will be a low single-digit number.
The agreement will extend the period of royalty payments from 2016 to 2023, guaranteeing a fixed minimum annual royalty to Shionogi from 2014 until 2020 in the low hundreds of millions of dollars while also providing for maximum royalty payments during the period 2016 to 2020 inclusive.
About AstraZeneca
AstraZeneca is a global, innovation-driven biopharmaceutical business that focuses on the discovery, development and commercialisation of prescription medicines, primarily for the treatment of cardiovascular, metabolic, respiratory, inflammation, autoimmune, oncology, infection and neuroscience diseases. AstraZeneca operates in over 100 countries and its innovative medicines are used by millions of patients worldwide. For more information please visit: www.astrazeneca.com
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27 December 2013
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