AZ agreement with Aralez for Toprol-XL in US

This announcement contains inside information

4 October 2016 07:05

ASTRAZENECA ENTERS AGREEMENT WITH ARALEZ
FOR BETA-BLOCKER MEDICINE TOPROL-XL IN THE US

AstraZeneca today announced that it has entered into an agreement with Aralez
Pharmaceuticals Trading DAC, a subsidiary of Aralez Pharmaceuticals Inc., for
the rights to branded and authorised generic Toprol-XL (metoprolol succinate) in
the US. Toprol-XL is a beta-blocker medicine for the control of hypertension
(high blood pressure), angina (chest pain) and heart failure. It was first
approved in the US in 1992.

Under the terms of the agreement, Aralez will pay AstraZeneca $175 million to
acquire the rights to Toprol-XL tablets in the US, and the authorised generic
medicine marketed by Par Pharmaceuticals. Aralez will also pay AstraZeneca up to
$48 million in milestone and sales-related payments, as well as mid-teen
percentage royalties on sales. AstraZeneca will continue to manufacture and
supply Toprol-XL and the authorised generic medicine to Aralez.

Mark Mallon, Executive Vice President, Global Product & Portfolio Strategy at
AstraZeneca said: "This agreement allows us to focus our resources on our new
launches and pipeline of innovative medicines, while working with Aralez, a
partner with expertise in cardiovascular disease, to ensure continued patient
access to Toprol-XL."

Adrian Adams, Chief Executive Officer of Aralez Pharmaceuticals Inc. said: "We
are pleased to be entering into this agreement with AstraZeneca. Toprol-XL
represents a strong addition to our growing anchor position in cardiovascular
disease. We look forward to helping patients continue to benefit from this
important medicine."

Financial considerations
In 2015, US Product Sales for Toprol-XL and the AstraZeneca share from the sale
of the authorised generic medicine totalled $89 million. The transaction is
expected to complete in the fourth quarter of 2016, subject to customary closing
conditions. As AstraZeneca will retain an ongoing interest in Toprol-XL in the
US through the ongoing milestones, royalties and product supply, the upfront
payment of $175 million, milestones and sales-related payments of up to $48
million and mid-teen percentage royalties will be reported as Externalisation
Revenue in the Company's financial statements. The agreement does not include
the transfer of any AstraZeneca employees or facilities and does not impact
AstraZeneca's financial guidance for 2016.

About Aralez Pharmaceuticals Inc.
Aralez Pharmaceuticals Inc. (NASDAQ: ARLZ) (TSX: ARZ) is a global specialty
pharmaceutical company focused on delivering meaningful products to improve
patients' lives while creating shareholder value by acquiring, developing and
commercialising products primarily in cardiovascular, pain and other specialty
areas. Aralez's Global Headquarters is in Mississauga, Ontario, Canada, the U.S.
Headquarters is planned to be in Princeton, NJ and the Irish Headquarters is
in Dublin, Ireland. More information about Aralez can be found at
www.aralez.com.

About AstraZeneca
AstraZeneca is a global, science-led biopharmaceutical company that focuses on
the discovery, development and commercialisation of prescription medicines,
primarily for the treatment of diseases in three therapy areas - Respiratory,
Cardiovascular & Metabolic Diseases, and Oncology. The Company is also
selectively active in Neuroscience and Autoimmunity. AstraZeneca operates in
over 100 countries and its innovative medicines are used by millions of patients
worldwide. For more information, please visit: www.astrazeneca.com

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