Global, science-led biopharmaceutical company AstraZeneca Plc (LON:AZN) announced on Friday that it and its global biologics research and development arm, MedImmune, have completed the agreement to sell AstraZeneca's US rights to Synagis (palivizumab) to Swedish Orphan Biovitrum AB (STO:SOBI) (Sobi), a leading integrated biopharmaceutical company focused on rare diseases and specialty healthcare products.

Synagis (palivizumab) is used for the prevention of serious lower respiratory tract infection (LRTI) caused by respiratory syncytial virus (RSV).

Under the terms of the agreement, AstraZeneca has received a total consideration of USD1.6bn, consisting of USD1.0bn in cash and USD590m in ordinary shares of Sobi, equating to an ownership interest of 8%. AstraZeneca has committed to retaining the shares for 12 months.

Also, the majority of the consideration is allocable to the divestment of the US rights to Synagis and, after netting off an appropriate derecognition of the intangible asset, will be reported within Other Operating Income & Expense in the company's financial statements in Q1 2019. A financial liability will be recognised for the consideration received in relation to MEDI8897.

In addition, AstraZeneca will also receive sales-related payments for Synagis and profit- and development-related milestones and non-contingent payments for MEDI8897 from Sobi.

Reportedly, Sobi will commercialise Synagis in the US and around 130 AstraZeneca employees have transferred to Sobi as part of the transaction.

Sobi will also have the right to participate in payments from the US profits or losses for potential new medicine MEDI8897 in development for RSV-induced LRTI. AstraZeneca will continue to develop MEDI8897 in collaboration with Sanofi Pasteur, the vaccines division of Sanofi SA.

In March 2017, AstraZeneca and Sanofi Pasteur had announced an agreement to develop and commercialise MEDI8897. Under the agreement, AstraZeneca is responsible for all development activity through initial approvals, as well as manufacturing of MEDI8897, while Sanofi Pasteur leads commercialisation activities. The two companies share all costs and profits equally.

Further, for the purposes of the UK Listing Authority's Listing Rule LR 10.4.1 R (Notification of class 2 transactions), the total book value of gross assets attributable to the RSV franchise were USD2.2bn as on 31 December 2017, of which approximately USD1.0bn was attributable to Synagis in the US. In the year to 31 December 2017, the pre-tax profits attributable to Synagis in the US were approximately USD118m.

In March 2017, AstraZeneca and Sanofi Pasteur had announced an agreement to develop and commercialise MEDI8897. Under the agreement, AstraZeneca is responsible for all development activity through initial approvals, as well as manufacturing of MEDI8897, while Sanofi Pasteur leads commercialisation activities. The two companies share all costs and profits equally.