Abraxis will have agreements with most major group purchasing organizations, representing the majority of US hospitals, and will assume responsibility for over 700 individual contracts for this portfolio of drugs.
Products in this acquisition encompass over 100 dosage forms and include the leading branded anesthetic agent, Diprivan, and Naropin, as well as a comprehensive suite of local anesthetics including EMLA Cream, Xylocaine, and Astramorph.
Abraxis' acquisition of over 100 dosage forms, combined with the over 300 dosage forms currently manufactured and marketed, together with the eight FDA approvals received this year and the 23 ANDA's currently under review by the FDA, positions Abraxis to be one of the largest manufacturers of injectable pharmaceutical products for critically ill patients.
Under the final terms of the agreement, Abraxis has acquired these products for a total cash consideration of $334 million. Abraxis paid AstraZeneca $259 million at the close and will pay $75 million on the first anniversary of the close.
AstraZeneca will exclusively supply to Abraxis these products for an initial term of five years for the US market.
AstraZeneca will continue to administer the distribution of this portfolio of drugs for a limited period of time.
AstraZeneca has also granted Abraxis BioScience the right of first offer to purchase or license its branded anesthetics and analgesics portfolio outside of the US should AstraZeneca decide to divest these assets. In addition, AstraZeneca has agreed that Abraxis will be its preferred partner for consideration of certain proprietary injectable products when patents on these products expire.