Allergan buys licensing rights to AstraZeneca's experimental treatment for $250M

MedImmune, AstraZeneca's biologics research and development subsidiary, entered into a $250 million licensing agreement with Allergan for the global rights to the MEDI2070.

Here are four things to know.

  1. MEDI2070 is an anti-inflammatory drug undergoing clinical trials for the treatment of Crohn's disease and ulcerative colitis.

  2. Parsippany-Troy Hills, N.J.-based Allergan purchased the exclusive global rights to MEDI2070 for an upfront payment of $250 million, with the potential for future milestone payments of up to $1.27 billion.

  1. Gaithersburg, Md.-based MedImmune is developing MEDI2070 through a collaboration agreement with Amgen, headquartered in Thousand Oaks, Calif. London-based AstraZeneca will give Amgen one-third of the royalties it receives from Allergan.

  1. The deal is expected to close in the fourth quarter of 2016.

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