AstraZeneca buys worldwide rights to cancer drug for USD1.5 billion

AstraZeneca PLC on Tuesday said it has entered into a deal to license a lung cancer therapy, in a deal worth up to USD1.5 billion.

The pharmaceuticals firm has acquired worldwide rights to develop and commercialise Zegfrovy, as part of an exclusive licence agreement with Dizal Pharmaceutical Co Ltd, a biopharmaceutical firm based in Shanghai.

Zegfrovy is approved in the US and China to treat a section of patients with non-small cell lung cancer, whose disease has progressed even during and after platinum-based chemotherapy.

Cambridge, England-based AstraZeneca will make an upfront payment to Dizal of USD600 million, plus additional sums of up to USD900 million based on development, regulatory and sales-related milestones.

"Dizal will receive tiered royalties on the global sales of Zegfrovy," AstraZeneca added.

The deal is to close in the second half of 2026. AstraZeneca said the agreement has not changed its financial guidance.

AstraZeneca noted that a supplemental new drug application has been submitted to health watchdogs in both the US and China for Zegfrovy to be approved as a first-line treatment for non-small cell lung cancer sufferers.

"The US FDA and China's CDE have also both granted breakthrough therapy designation to Zegfrovy in this setting," AstraZeneca said.

A first-line treatment differs from current indication in both the US and China. Currently, it has been approved in those that have already received chemotherapy.

AstraZeneca shares fell 1.2% to 12,456.00 pence each in London on Tuesday morning.

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