Boston, MA 09/16/2014 (wallstreetpr) – According to reports, AstraZeneca plc (ADR) (NYSE:AZN) has decided to enter into a partnership with Eli Lilly and Co (NYSE:LLY) in order to ensure a smooth development of Alzheimer’s drug. The deal will cost around $500 million to AZN. As per the information, British Group had decided to come up with an experimental drug of Alzheimer’s drug sometime back. Currently, the drug is in the Phase II development and soon it will enter in the late-stage Phase III development.
Road so far:
AstraZeneca plc (ADR) (NYSE:AZN) made an announcement couple of month’s back that it was looking for a partner for the development of its well-acclaimed BACE inhibitor drug, AZD3293. The company made a significant progress in less than three month’s time and closed the deal successfully.
Terms and conditions of the deal:
AZN has entered struck a partnership deal Eli Lilly and Co (NYSE:LLY) in which the latter one will pay close to $500 million to AstraZeneca plc (ADR) (NYSE:AZN), depending upon the progress of the development process of the drug. On the question of receiving payment, one of the spokesmen of AZN said that the company was expecting the first installment of the total payment of $50 million by the first half of 2015. The announcement was made on Tuesday morning.
When it comes to the cost of production, the management of AstraZeneca plc (ADR) (NYSE:AZN) has clarified that both the firms will share the total production cost of Alzheimer’s drug named AZD3293 equally. At the same time, the revenue generated over a period in the future will also be shared by both the companies in the same proportion in which cost will be distributed. Healthcare industry is going through one of the good phases in the long run where companies are putting more efforts towards research than cost cutting. No individual from both the companies was available to share his views after the announcement.
