Tillotts Pharma to purchase global rights for AstraZeneca’s Entocort excluding the U.S.

Tillotts Pharma AG ("Tillotts"), part of the Zeria Group, announced today that it has entered into an agreement for the acquisition of the global rights for Entocort^® (budesonide) from AstraZeneca, excluding the U.S., which will remain with AstraZeneca.

Entocort is a locally-acting glucocorticosteroid, currently approved in more than 40 countries for the treatment of Crohn's disease (CD) and, in some markets, ulcerative colitis (UC). CD and UC are types of Inflammatory Bowel Disease (IBD), one of the most prevalent gastrointestinal (GI) diseases, affecting over 2.2 million people in Europe (five million worldwide). CD and UC are chronic, debilitating diseases that may lead to life-threatening complications. Symptoms vary, but often include abdominal pain and diarrhea.

"Entocort perfectly complements our Asacol^® portfolio marketed in 50 countries worldwide through our own European Affiliates, our Japanese mother company Zeria Pharmaceutical, and our trusted network of marketing partners," said Thomas A. Tóth von Kiskér, CEO at Tillotts. "This agreement underscores our commitment to continue to position Tillotts as a leading European specialist in the field of gastroenterology, offering patients a wide range of treatments for the GI tract."

Mr Sachiaki Ibe, Chairman and CEO of Zeria Pharmaceutical commented:

We are excited to obtain a well-established brand, such as Entocort, and to expand its commercial reach to Japan and other countries. With this move, we confirm our expansion strategy of organic growth combined with merger and acquisition activities, while delivering increased value to our shareholders.

"Adding Entocort to our portfolio will greatly enhance Tillotts' ability to compete in Europe and globally for further licensing deals and acquisitions," added Dirk Reckert, Chief Business Development Officer at Tillotts.

Under the terms of the agreement, Tillotts will make an upfront payment to AstraZeneca of $215 million upon completion of the transaction to acquire the rights to sell and develop Entocort capsules and enema formulations outside the U.S. The transaction does not include the transfer of any AstraZeneca employees or facilities.

Luke Miels, Executive Vice President, Global Product and Portfolio Strategy and Corporate Affairs, AstraZeneca, 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.

With the acquisition of Entocort Tillotts will be reaffirming its commitment to patients by providing treatments for a wide range of disorders of the GI tract, while delivering value to shareholders by expanding and diversifying the company's portfolio. Under the agreement, Tillotts will acquire all rights related to manufacturing, marketing, sales and trademarks of Entocort. Tillotts will take over the global supply and distribution in markets (ex-U.S.) where the product is currently available.

Entocort is available in two formulations: capsules and enema.