Astra seals key deal with rival

Drugs giant AstraZeneca lifted full-year earnings targets yesterday after sealing a multi-million pound deal to sell marketing rights for its heartburn pill to US rival Pfizer.

The UK’s second-biggest pharmaceuticals group will receive $250 million (£160m) upfront after giving Pfizer exclusive global marketing rights for the over-the-counter (OTC) version of acid reflux treatment Nexium.

Astra will also be eligible to get milestone and royalty payments from Pfizer based on product launches and sales of the OTC medication.

The deal comes at a welcome time for Astra, which has been suffering from lower sales and profits amid competition from cheaper generic drugs and challenging market conditions. It recently revealed that half-year profits slumped by a quarter.