As per the contract, Astellas is expected to pay EUR25m in three tranches as the steps of transfer of the rights are expected to be concluded over the next six to 12 months.
Earlier, in 2001, MediGene has acquired the rights from Tolmar Therapeutics.
For MediGene, all future costs, obligations and risks associated with the supply of Eligard to Astellas, as well all future procurement costs and license payments to Tolmar, will cease within the next months.
Arnd Christian, CFO of MediGene, said: “This is an excellent deal for MediGene, both in financial and strategic terms. It not only reflects the full NPV of all future Eligard revenues according to the previous deal structure, but also provides us with significant and non-dilutive financing in a very tough capital markets environment.
Masao Yoshida, president and CEO of Astellas Pharma Europe, said: “We are very excited about this agreement with MediGene, the continuous commitment to the needs of patients in the areas of urology and oncology reaffirms our own. We have a strong expertise in urology and are pleased to now in the marketing and distribution of this important form of treatment used in Europe to all these areas. “