The global agreement excludes Japan, where Daiichi Sankyo will retain exclusive rights to DS-1062 and pay royalties to AstraZeneca in the single-digit average range. No closing conditions are available for booking. The cooperation agreement came into force on 27 July 2020. The transaction has no bearing on the company`s financial forecasts for 2020. “The conclusion of this new agreement with Daiichi Sankyo will allow us to have full control over the movement`s brand strategy and marketing activities® in the United States, while increasing our margins. We thank our colleagues at Daiichi Sankyo for their confidence and look forward to continuing this successful partnership,” said Rick Scruggs, RedHill`s Commercial Director, Chief operating Officer of the United Nations. In addition, the companies also entered into a subscription agreement that gave Daiichi Sankyo 283,387 in RedHill`s American Depositary Shares 283.387 as a partial reflection on movantik®. Under the terms of the agreement, Daiichi Sankyo will receive $1 billion in phased payments from AstraZeneca. The Japanese company will also be eligible for $1 billion for regulatory milestones and $4 billion for distribution milestones. AstraZeneca pays Daiichi Sankyo an advance of $1 billion in milestone payments: $350 million is due when completed, with $325 million after 12 months and $325 million after 24 months from the date the agreement comes into effect. Under the new agreement, RedHill assumes all responsibilities and costs associated with marketing Movantik® in the United States. During the duration of this new agreement, RedHill Daiichi Sankyo will pay a fee for Movantik`s net sales® in the United States, in addition to three lump sum payments per year from 2021 and the end of 2023.

Gallant adds that the agreement will also support Daiichi Sankyo`s other DXd ADCs by allowing the company to “optimize the resource allocation that is needed to maximize our third ADC leader, U3-1402” and advance other products such as DS-7300 and DS-6157 over the next five years. AstraZeneca has signed a new agreement for the development and commercialization of antibody konjugat (ADC), DS-1062 of the Japanese company Daiichi Sankyo, for different types of tumors.