AstraZeneca to boost biologics ambitions with MedImmune acquisition

AstraZeneca has entered into a definitive agreement to acquire US biotech company MedImmune for a total consideration of approximately US$15.6bn.

The combination of MedImmune with AZ's wholly-owned subsidiary Cambridge Antibody Technology (CAT) will create a world-class, fully integrated biologics and vaccines business within the AstraZeneca Group with critical mass in research, development, regulatory, manufacturing and global sales and marketing reach, and significantly accelerates AZ's biologics strategy.

The acquisition extends AZ's r&d science base to allow it to address novel drug targets through three key technological approaches: small molecules, biologics and, for the first time, vaccines. The proportion of biologics in AstraZeneca's pipeline will rise from 7% to 27% and enlarges the total pipeline by 45 projects to 163 projects. The deal is expected to close in June 2007.

MedImmune is a leader in protein engineering and biologics manufacturing, with a production capacity of more than 30,000 litres planned by 2010 and world leading cell line productivity levels. Through further modest investment, capacity could be increased to over 60,000L. This would secure production requirements for the long-term and avoid the need for major near-term 'green-field' manufacturing investment by AZ to support its biologics strategy.

'This acquisition represents a transformational step to deliver our biologics strategy sooner than anticipated,' said David Brennan, ceo of AstraZeneca, 'MedImmune adds an exciting existing pipeline, including two late-stage products, great expertise in biologic drug development and state of the art manufacturing facilities.'