AstraZeneca splashes out
DRUG firm AstraZeneca has snapped up the rights to an experimental anti-depressant to boost its line-up of new medicines and lift its position in that area of the drugs market.
AstraZeneca, UK’s second-largest pharmaceutical company, said it struck a $1.24bn (£749m) licence deal with US biotechnology group Targacept for its TC-5214 drug for major depressive disorder (MDD).
MDD affects about 42m people and the global anti-depressant market is worth more than $20bn.
AstraZeneca has less presence in depression drugs than its rivals and needs new drugs to replace older ones like heartburn treatment Nexium.
TC-5214 is in the final stages of development but should be ready to be filed for approval in 2012, just as AstraZeneca’s $4.5bn depression drug Seroquel faces challenges to its patent.
Analysts believe TC-5214 sales could top $1bn a year if it passes trials.
AstraZeneca chief executive David Brennan said: “The opportunity to improve treatment in depression is a large one, both commercially and in terms of benefits for patients.”
The latest tie-up represents a deepening of relations between AstraZeneca and Targacept.
The two companies already have a deal on cognitive disorders dating back to 2005.