Tillotts to buy non-US rights of AstraZeneca’s gastroenterology drug Entocort for $250m

Entocort (budesonide) is currently approved in more than 40 countries to treat Crohn’s disease (CD) and ulcerative colitis (UC).

The US rights of Entocort will remain with AstraZeneca, which expects to file regulatory applications in the coming months seeking approval for the drug in Japan.

As part of the deal, Tillotts will pay AstraZeneca $215m upon completion of transaction to acquire rights to sell and develop Entocort capsules and Enema formulations outside US.

The deal will see Tillotts acquire all rights related to manufacturing, marketing, sales and trademarks of Entocort.

The company will also take over the global supply and distribution in markets (ex-US) where the product is currently available.

According to AstraZeneca, the transaction does not include the transfer of any of its employees or facilities.

AstraZeneca Global Product and Portfolio Strategy and Corporate Affairs executive vice-president Luke Miels said: "Our agreement with Tillotts reinforces our strategic focus on selected therapy areas and puts this important medicine in the hands of a company with specialist expertise in gastroenterology, which will benefit patients."

Subject to customary closing conditions, the transaction is expected to be completed in the second half of this year.

Tillotts CEO Thomas Tóth von Kiskér said: "Entocort perfectly complements our Asacol portfolio marketed in 50 countries worldwide through our own European affiliates, our Japanese parent company Zeria Pharmaceutical and our trusted network of marketing partners."

With the acquisition of Entocort, Tillotts will now be able to provide better treatments for patients with a wide range of disorders of the GI tract.

Image: AstraZeneca headquarters in London, UK. Photo: courtesy of AstraZeneca plc.